All Forum Posts by: Natalie Kolodij
Natalie Kolodij has started 63 posts and replied 3635 times.
Post: Which bank allows for multiple accounts?
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
I'm a credit union person overall- it can be a little less friendly for multiple accounts, sharing funds ect.
But not bad overall- most do shared branching so you can always acces via a different credit union in network.
I use capital one for my back up/ big banking. HYSA.
Post: Real Estate CPA
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Do you need them to be local?
What stage are you in with your investing journey?
Post: REP Status while converting Primary Residence to Rental Property
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Likely not on one property especially renovating one that is your current primary.
It may be a technicality of meeting it but those areas are gray. In consulting with the former IRS advisor on IRC 469 (passive losses) his stance was that pre-in service hours do not qualify.
Post: Real Estate & CRYPTO Experienced Tax Planner
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Crypto Accountant recommend is Matt Matreas-He is the leading national educator on it.
Focus on someone who specializes in your main income source, then you can often just pay for an advising package with a tax professional who specializes in your other income source.
Post: Owner Draw - Corporate Veil
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
You are allowed to contribute or withdraw funds from your LLC without piercing the veil.
Piercing the veil would be if you refinanced within the LLC then just used that money from the business bank acct to pay for all your personal vacations that year.
Post: Do we need a separate bank account?
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Always a good idea to separate it.
Doesn't NEED to be a business bank account- but often some perks to having one and a business CC as well.
Post: Do I Qualify as a Real-estate Professional?
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Quote from @Simon Misiewicz:
1. Material Participation: To qualify as a real estate professional, you must meet the IRS's material participation requirements. This means you must be involved in the day-to-day management and operations of your rental properties. The CPA will likely inquire about your involvement in setting rents, approving repairs, and overseeing renovations.
2. Hourly Requirement: You mentioned that you easily meet the 750-hour requirement, which is essential for qualifying as a real estate professional. The CPA may ask for documentation to support the number of hours you spent on real estate activities, such as logs, calendars, or other records.
3. Recordkeeping: Having accurate and organized records is crucial when claiming real estate professional status. The CPA will review your records to ensure they are detailed and well-maintained.
4. Documentation of Services: The CPA may ask for evidence of the services you provided related to the properties. This could include emails, contracts, invoices, or any other documentation that shows your involvement in property management, renovations, repairs, and other related activities.
5. Comparing Hours to Other Activities: The CPA may inquire about your other sources of income, such as investments, pensions, and IRA withdrawals, to determine if real estate activities are your primary source of income.
6. Active Participation in Management: The CPA will want to ensure that you were actively involved in the management of the properties and not just a passive investor.
7. Planning for Deductions: If you qualify as a real estate professional, it could have significant tax implications. The CPA will likely discuss how this designation impacts your tax deductions and overall tax strategy.
8. Other Considerations: The CPA may explore any other relevant factors that contribute to your qualification as a real estate professional, such as the nature of your involvement in the properties and your intentions to continue this level of activity.
Be prepared to provide detailed information about your real estate activities, hours spent, and any other relevant documentation to support your qualification. The CPA's analysis will help determine if you meet the IRS requirements, and they can provide guidance on how to maximize tax benefits based on your real estate professional status.
Hey there- this appears to be an AI generated response which we're trying to discourage on the forums - Please try to refrain from utilizing them.
Post: Need connections with a Friendly RE CPA in ATL willing to work with !
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Mark Pearlburg is REI specialized and based in ATL
Post: Keep invoice receipts or just original invoice?
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
If ever audited it's always better to haveit and not need it vs. the opposite.
Just set up a system that works for you to easily scan all docs inot a specific drive folder.
You can often haev receipts/invoices auto sent to an email too and have an automation setup to do it as well.
Post: capital gains exemption on a primary residence that is owned inside a DST?
- Tax Strategist| National Tax Educator| Accepting New Clients
- Posts 3,749
- Votes 4,499
Revokable trusts typically still qualify,
I'd bounce back with your CPA and bring up the following
https://www.taxnotes.com/research/federal/irs-private-ruling...
https://www.law.cornell.edu/cfr/text/26/1.121-1