All Forum Posts by: Luis Baumeier

@Joe Splitrock

Got it. I will definitely read that book after I finish "the E-myth" that I'm reading right now. Thanks for all the advice everybody.

@Joe Splitrock What you said clears a lot of things. Thank you. I understand better now. That's what I get for going on YouTube, typing "Real estate tax deductions" and thinking everything applies to my business and that I know everything now. To be honest all this CPA talk confuses me a lot, and the more I try to understand, the more It confuses me. I am just trying not to spend the little cash flow I get from my 2 rentals all on CPA fees and taxes. I know it sounds like I am being cheap, but after I got quoted $2000 for my yearly taxes I just though all the money I make with the rentals will go to pay the CPA, even if he saves me money on taxes. Am I wrong for thinking that? What do you guys think?

@Steven Hamilton II Thanks for the explanation. That makes a lot of sense. I bought that computer on impulse , but should've consulted somebody first, my fault😂.

About the definition of my business, I thought I was a real estate/buy and hold/Deal search type of business, even though I was able to only buy 2 houses in the past 12 months, and that is what I use the computer for ( about 20 % of the computer use only), looking for deals, e-mailing realtors, contacting property managers, running numbers. The aunt told me "Well, your business is just rentals right now". I am Ok is she is right. I might have just misunderstood what my business is at the moment.

I called my tax advisor to ask how to use my business credit card. She is my wife's aunt and is not a CPA, but has being preparing taxes for the whole family for years and for other people, including some LLCs. I was asking if we were going to be able to deduct the computer and printer I bought on that credit card, since I use for my business. I own 2 SFHs as rentals under the LLC. She told me we were not going to be able to deduct that because my business is not a real estate business, but only a rental business. Is she right? Should I look for a real CPA and do my taxes with them ?( I called some CPAs in the past but they were quoting me $2000+ to do my taxes, that's why I stuck with the aunt for $300)

What should I do?

Thanks

https://www.youtube.com/watch?v=DDvx9q_kcUY

I bought my first deal and I am looking for my second one. I love analyzing deals every day and created my own spreadsheet to do it. On it I account for a monthly value of 5% of the rent for Vacancy, 5% for Repairs and 5% for CapEx. My Market is South Richmond-VA. Do those numbers sound realistic? How do I get accurate numbers?

Thank you

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