All Forum Posts by: Chris Picciurro

Not necessarily. What are some additional details?

If you meet the criteria and have a valid cost segregation study then an audit will not be more than an inconvenience. All the tax returns we prepare are enrolled in an audit protection program where we handle any tax notices or audits.

I would not use an S-Corporation. Single-member LLC is my vote as well.

It sounds like you will need some PIGs (passive income generators) to offset the self storage PAL. You would need to do a 1031, deferred sales trust or Qualified Opportunity Zone fund strategy to not recognize the capital gain.

I agree with @Michael Plaks. Some very talented tax pros when it comes to real estate strategy. I would set up a meeting with 2 or 3 firms and find the best fit. Congrats on the expanding portfolio!

Very interesting situation as it related to the Section 121 exclusion. When did you and your ex-wife move into the property as a primary residence?

The cost segregation would cover the entire property. The firm performing the cost segregation will factor in components of the property including the basement. Once the cost segregation is complete, it will be allocated between STR and LTR use. You will need that allocation when your depreciation schedules are established at tax preparation time.

Absolutely. Even triggering passive activity losses (PAL) isn't terrible if you think tax rates will go up in the future. Tax free rental income is nice!

Investors can use the SDIRA for private lending. If you get in the business of fix & flip using the SDIRA UBIT (unrelated business income tax) might be triggered. One strategy is to purchase a home in the SDIRA, rent it for a year then list it for sale.

It sounds like a yes.