All Forum Posts by: Natalie Kolodij

An LLC only offers asset protection. There is no tax benefits.

I'm not sure what you mean by transfering title from "the legal entity" instead of an LLC. An LLC is a legal entity.

Keep in mind a good accountant's billable rate is going to be at leastttt $300 an hour. 

So to prepare your return, answer your emails quickly, offer advising. 

The price will definitely not be $500 for the year. That would get you just a return filed at H&R block. 

So if someone offers it at that price- assume it's a red flag not a "deal". 

@Amanda Han is California based and she's literally who wrong the book on taxes for bigger pockets. I'd start there.

 Catherine is that the firm that you currently work for?

Technical answer was already fully provided for you above.

In my experience most agents drive so many miles that taking the standard 58ish cents a mile as the deduction vs. "writting off" the vehicle via actual expenses tends to be a better write off overall. 

If it's a $20k vehicle and you drive 20,000 miles annually for business in 2 years you've already gotten to the same level of "write off" and years 3+ are gravy. (you still get to deduct gas, maintance) but typically the mileage can be better. 

But also- talk with your specific CPA because depending on your situation doing a big deduction in one year may be a better option

Are you moving more than 50 miles away for work or another unforseen event? If so you can stil qualify for the majority of the 121 primary residence tax free sale. 

Renting rooms within your house doesn't interfere with the 121 exclusion, but also doesn't qualify for a 1031. It's kind of a unicorn. 

It's treated exactly like stock to the IRS. 

So there's not really a way to "funnel this" legally. 

You can potentially get a little benefit with qualfiied opportunity zones. 

Or if held in/ done in a self directed IRA you can potentially buy real estate in there tax free

You'll need to utilize interest tracing to deduct the interest of that Heloc/Refi funds against the rental income of the rental it is used to purchase. 

It's best to have the funds go straight into a clean un-used bank account/ don't intermix with your primary checking account. 

If the funds are split between more than one deal track wht amount goes to each, as you'll deduct a proportionate allocation of interest on each as well.

Very excited for this one 

If you're open to wroking virtually there are several REI focused tax pros who are also investors and work with clients all over the US. Just check out the top contributors on the tax forums, as well as the referral network options on BP as well.