All Forum Posts by: Robert Bolejszo

Thank you for the response Jessica. I hope that town's equalization ratio doesn't become a reality for me (41.39% of Assessment) and Tax % of full Assessment (6.9%).  The property current Tax annual amount is $11700 and based on these values my taxes could go up to $17k which is insane (sale price projected 600k). Especially because I see a bunch of 9-15 unit properties for sale price of 1.5 million and have 15k a year taxes.

Hello - I'm currently in the process of purchasing a four family home that had some renovation work done in 2014 with permits (i.e electrical, plumbing, new bathrooms, new kitchens). During the closing process recently (Aug 2017) the seller learned that the contractor never closed those 2014 permits when the renovation work had been performed.  The seller is now working to close those permits before he is able to sell the property to me.

My Question - 1. Are taxes reassessed when permits for this type of work is closed? or can i expect my taxes to stay relativity the same? (idk if it matters that the permits were opened in 2014 or maybe even earlier) I'm a bit afraid that my taxes will skyrocket a year after I purchase the property.

@Frandy Blain - My attorney advised against it because I financed the home under my personal name instead of the LLC, as I wouldn't be able to secure financing under a recently opened LLC. If I financed the home under the LLC then the ownership of the property could be moved without issue.

@Linda Weygant - Are there any concerns I should be aware of when converting my income from passive to earned (Pros Vs Cons)? My understanding the door to potential tax deductions would open under earned income. (90% would be passive income and 10% would be earned income)

My idea at a very high level to reduce my overall tax burden - The property mgmt company would hold the 5-10% (pretty much the profit) of the rent as payment and I will be able to apply additional tax deductions that are not available for passive income. 

I currently have two properties (and plan to grow) and my attorney advised against me opening and moving my properties under a LLC, as I financed the properties under my name and I'm told mortgage lenders frown upon this practice.

So my thought was to open a property mgmt company LLC to manage my own properties for a few reasons. I'm told it can provide some additional tax benefits that a passive income property LLC cannot provide and I can share the LLC name with my tenants instead of my personal name. I understand that this LLC won't provide legal protection on my properties as they actually won't be under the LLC.

My questions:

1. Do you need any license or something else I should be aware of?(when only managing your own properties) when opening a property mgmt company.

2. What are your thoughts on this idea? is it a good idea for what i'm trying to achieve or no.