All Forum Posts by: Rashid Khalil

Hey all, I've had some unexpected life updates and am considering selling our short term rental in Cape Coral FL. It's fully furnished for an STR & has a year plus of track record plus a rate in the low 3%.
What is the best course of action with this? List it with our agent down there & sell it furnished, or unfurnished?
List it on various STR forums & try to bypass the agent?
Consider alternate financing so a purchaser could keep the low rate?

what mortgage do you have FHA or conventional?

whats your return form property ?

0 Votes

Cape Coral, Florida

Deal analysis ; please provide your perspective thanks .

SFH ask price 400k

Comp 390-410 for similar

A class neighborhood

Roofstock rating 5 star

House in market 60 days

Situation : divorce

Price reduced a month ago from 420 to 400

Conventional mortgage 265 k refinanced in Oct 2020 at 3% for 30-year fixed

Balance mortgage 250 k

My offer 375 k

33% equity cash payout to seller = 125 k

66-% value = 250 k Mortgage transfer at sub to keep the low rate of 3%

Advantage: PRICE 5% below market and lower rate

CONS:

1. loan recall by lender 2. Large down payment

Rental value : 2800-3000

Would want to do STR for the rest of the year in 2023 to get the bonus depreciation against w2 income and then transfer to LTR

0 Votes

Detroit, Michigan

Quote from @Ashish Acharya:

The calculation can be complicated because it depends on how much SE taxes you will pay. That depends on how much you make at your W2 Job. Your tax advisor will have to give you that amount. It will be around: 13k of employer contribution. You also need to decide which plan (SEP if 2022).

w2 income was 400 k so I capped out of SS, as i understand I owe now only a Medicare tax 2.9 + add Medicare tax, i have both SEP IRA and a solo 401k account opened for LLC, hopefully this provides more clarity to my question, will appreciate further guidance. TIA

0 Votes

Detroit, Michigan

I made 403 b pre-tax contribution (20500) with the W2 job. The employer also contributed and then I contribute with after-tax money to hit max allowed total of 61000 in total.

Totally separate form that w2, I also have Self-employment with my LLC (filing as a sole proprietorship) that has NOI of 70000. I understand I cannot contribute from the employee side, but can I still contribute from the employer side for this income, if yes how much? will appreciate your help, I did some google research but got even more confused.

1 Vote

Detroit, Michigan

no like to contribute to traditional ira and do a backdoor roth for 2023, what if there is existing assets in traditional or sep ira already

0 Votes

Detroit, Michigan

thanks, Dmitriy. is this true that for traditional IRA contributions, we need to get all assets out of all IRAs except inheritance IRA and Roth IRA, i think one of the YouTube video mentioned that.

0 Votes

Detroit, Michigan

Can I roll over my Roth IRA to Roth solo 401k?
will appreciate your insight.

0 Votes

Detroit, Michigan

Quote from @Bryan Martin:

Quote from @Rashid Khalil:

Quote from @Bryan Martin:

Quote from @Rashid Khalil:

I earned 90 k as a 1099 contractor working in my LLC. expenses are around 20 k so NOI is 70k. it appears tax efficient if I tax this income as S- corporation. i do have EIN for my LLC and all income and expenses were through LLC named bank account. my issue is I didn't use any payroll throughout the year to pay myself, so does it disqualify me for S- corporation tax option?

will appreciate thoughts / advises / guidance etc.

TIA

For an S-Corp, you’re expected to take a “reasonable” salary or wage for the work that you’re doing. Easiest thing to do is probably start taking a paycheck in 2023 and be a S-Corp moving forward and don’t worry about it for the prior year.

thanks Bryan,

is monthly or biweekly payroll maintenance is required to be complaint with s corporation,

No. Some S Corp owners only pay themselves once a year. I’d still recommend at least monthly though so you’re not hit with a huge tax bill at the end of the year.

very helpful, thanks a lot. i would definitely make better arrangements for 2023 just working to fix the 2022 situation.

0 Votes

Detroit, Michigan

Quote from @Daniel Johnson:

Quote from @Bryan Martin:

Quote from @Rashid Khalil:

will appreciate thoughts / advises / guidance etc.

TIA

I would talk with your tax professional. It’s not clear whether you have taken an S-election for the LLC or not. If you have not, then you need to adjust that first with the IRS, then sort out doing an annual payroll for the reasonable salary each year. The rest would flow through as ordinary income.

thanks, Daniel, appreciate your advice.

that mean can't fix this issue for 2022 ?

0 Votes

Detroit, Michigan

Quote from @Bryan Martin:

Quote from @Rashid Khalil:

will appreciate thoughts / advises / guidance etc.

TIA

thanks Bryan,

is monthly or biweekly payroll maintenance is required to be complaint with s corporation,

0 Votes

Detroit, Michigan

All Forum Posts by: Rashid Khalil

Rashid Khalil has started 30 posts and replied 86 times.

Post: Selling a STR, furnished or not, list with agent or not?

Post: first deal plan, please analyze and rate the terms

Post: retirement contribution by LLC

Post: retirement contribution by LLC

Post: roth ira rollover

Post: roth ira rollover

Post: roth ira rollover

Post: s corp possible ?

Post: s corp possible ?

Post: s corp possible ?