All Forum Posts by: Michael Plaks

Quote from @Francisco Milan:

Is there someone who can help me with a bit of guidance on structuring a few things ? 

Must be local here in Maricopa 

Here is a blog post explaining how to find one. Finding a local CPA is no longer needed or common post-Covid but of course it is your right to seek locally.
https://www.biggerpockets.com/forums/51/topics/1222774-expla...

If you really insist on local, I recommend finding your local investor group and asking them for recommendations.

Quote from @AJ Satcher:

I formed my first LLC in October 2022 for my Turo Business. For anyone unfamiliar with Turo, it is essentially like the Airbnb of rental cars. I stopped doing actual business under this LLC in June 2024. I've been wanting to get an LLC for my Real Estate/STR operations so instead of creating a new one, I figured I'd just utilize the existing Turo LLC. All I did was file an amendment to change the name of the LLC, but essentially it is still the same entity.

On tax side, it is totally fine, and many people recycle their LLC for a different business.

On legal side, look into two potential issues:

- state charter that specifies the nature of the LLC's business. It might need to be amended to stay compliant

- carryover liability from the old business (which might also affect insurance)

I'm not an attorney so cannot give you any advice on these two potential issues.

Quote from @Lenny B.:

Lenny, here is a post on how to find a tax advisor:
https://www.biggerpockets.com/forums/51/topics/1222774-expla...

Please note that we cannot offer you our services until your post is moved into the Classifieds forum by administrators. 

@William C.

I personally would not be concerned about this structure's permit status for tax purposes. Our tax code tries to be blind to legal compliance outside of taxation. To give you an example, you're supposed to report your business income for tax purposes even if the source of income is illegal.

The most serous concern for me would be the one raised by @Chris Seveney: insurance. And with STRs, the risk of an insurance claim is higher.

Quote from @Jody Hawkins:

Question for all the keyboard accountant types.  Curious on the capital gains of installment sale for property held less than 1 year.  Are all gains taxed as ordinary income or is principal returned in later years able to be considered long term gain

I don't qualify as a "keyboard accountant" being a real one, so feel free to ignore my response.

Installment sale does not change the character of the gain. If it would have been short-term capital gain in a straight cash sale, it is still short-term gain in an installment sale, in its entirety. 

I'm carefully saying "would" because we're not even sure if your sale qualifies for installment sale treatment at all. For example, if it was a flip, you most likely have to report the entire gain in the year of sale - even if you have not received your entire principal until later years. It's a very common trap for selling flips with owner financing.

Here is my much longer and much older rant on the topic, along with comments from other people who are not as obnoxious as I am:

https://www.biggerpockets.com/forums/51/topics/841844-good-t...

Quote from @Jeffrey Fullard:

I am looking for someone to file my wife and I 2024 Taxes and for the rental properties

Please read this post and notice the part about us being prohibited from offering our help to you, as long as this post stays on the Tax forum. Maybe they will move it into Classifieds, and then we will be allowed to say "give me a call."
https://www.biggerpockets.com/forums/51/topics/1222774-expla...

Quote from @Dan Hawtree:

A "tax strategist" is someone anuitizing what is typically an annual tax planning discussion. There are plenty of competent real estate knowledgeable tax advisors without the yoke of a subscription.   

Both "tax strategist" and "tax advisor" are merely self-assigned marketing-based descriptions. They do not convey the business model used by the person - as in subscription or otherwise - and they do not convey any specific qualification or service, either.
https://www.biggerpockets.com/forums/51/topics/1222774-expla...

Quote from @Franklin Marquette:

Hey all does anyone know of any good books, articles, etc learn about tax strategy? I only have 1 property and a W2 so am just starting at not really at the stage where it makes sense to hire an expensive tax strategist (unless the forum disagrees).

Despite this, obviously want to make sure I am tax efficient. Just looking for any affordable resources, tools, etc.

Thanks!

Bigger Pockets bookstore sells two decent books on tax strategies.

You can also shop on Amazon for books by Sandy Botkin, Stephen Fishman, Tom Wheelright and Diana Kennedy 

Quote from @Angelo Llamas:

@Michael Plaks thanks for responding but okay that makes sense at least one of us can get it because yes I plan on doing all the day to day approving guest scheduling repairs, book keeping etc I don't plan on using property management so I'll be pretty heavily involved in the STR

Sadly, I see some incorrect advice on this thread, even from fellow professionals. Proceed with caution.