All Forum Posts by: Nicholas Aiola

@Justin R. I agree with your CPA and say the same thing to our clients. Better safe than sorry! Best practice is to obtain the W-9s at the beginning of the relationship with your vendors so you don't have to scramble for them in January.

@John Smith You'll want to consult a syndication attorney for specifics, but check out Rule 506(b) - it allows for up to 35 "sophisticated" investors. Partnerships (LPs, LLCs, etc.) are the most common entity structure for syndications.

@Nashaun Latham Thanks! We service all 50 states :)

@Account Closed The answer, albeit unhelpful, is that it depends. The majority of what counts and what doesn't count for REP/material participation is gray and dependent on the facts and circumstances of the situation at hand. There is case law addressing hours spent searching for new properties, but it all depends on the specifics of the case.

@Jay Miles Unfortunately not. Below are the two requirements for REPS:

1. Over 50% of the personal services performed in trades or businesses by the taxpayer are performed in real property trades or businesses in which the taxpayer materially participates, and

2. More than 750 hours of services were spent in real property trades or businesses in which the taxpayer materially participates.

You would not be able to materially participate as an LP.

@Account Closed There are tax ramifications to everything! Only half kidding. Converting to condos can result in separate sales transactions, which may provide more flexibility for tax planning.

Yes, we do tax advisory, tax prep, bookkeeping, and financial reporting for syndicates, too.

@Kumar R. Spousal hours count regardless of the spouse's ownership. See Reg. Sec. 1.469-5T(f)(3).

@Mike S. Each state has its own laws and filing thresholds. I'm unaware of a single resource that lists this information for all states, but the filing instructions for the states' relevant tax forms and the states' official websites are good places to start.

@Steve Vanderlay It depends on the number of members and tax classification of each LLC. Single-member LLCs are disregarded and do not require separate tax returns, unless an election was made to be taxed as a C or S Corp.

You'll want to consult an attorney, both in the US and abroad, both who are familiar with cross border tax law. Entity structuring can be complex, especially with foreign considerations.

Each state has its own filing requirements and state tax laws. Generally speaking, if there is nexus in a state or income sourced to a state, there may be a filing requirement in and possibly taxes owed to that state.

@Eric Doe If you are married and lived in the home for 2 out of the last 5 years, you could exclude up to $500k of gains from the sale of your primary home. If your gain exceeds $500k, you will pay long-term capital gains rates federally on the excess over $500k (0%, 15%, or 20%, depending on your tax bracket). State rates differ.