All Forum Posts by: Sean O'Keefe

Quote from @Jeff Davis:

Quote from @Michael Plaks:

@Jeff Davis

You can find quite a few of us right here on this forum, simply by browsing.

Just keep in mind that August is a bad time to look for a CPA. Read this:

https://www.biggerpockets.com/forums/51/topics/1057644-augus...

Thanks, Michael! This is helpful. Looks like November is a better timeframe to consider moving to a new CPA. 

 Yes, November is probably a better time. The sweet spot -> after 9/15 & 10/15 filing deadlines, but before Jan - Apr busy season. 

Depreciate the roof in line with how long the roof is expected to last (e.g. useful life). The IRS has benchmarks/requirements for this and generally, the useful life of the roof is not 20 years or less so it isn't eligible for bonus depreciation in 2023 (80%). 

Yes, BUT these are generally already included in the acquisition value of investment property. Cost seg firms look at the value of investment property less land  (etc.) as a starting point to evaluate what useful life should be across investment property and segregate it accordingly. 

Quote from @Benjamin Giles:

I have a condo I bought with cash. Due to low ARV and current high interest rates a refi doesn't make sense due to fees etc.

New condo association rules prohibit selling to an investor. Owner occupied only. 

Property cash flows $500 month.

Is there a benefit to transferring the property to my LLC? My LLC is currently about 1.5 years old and has no income or expenses. I am not well versed in tax liability/benefits etc., or benefits if my LLC having assets.

I would like to explore the possibility of DSCR loan on a property with my LLC, so would having that asset under my LLC have a benefit over me owning personally with a potential loan to my LLC?

Transferring the property into LLC is for limiting your personal liability (like insurance), not for tax optimization.

Not having a loan on the property will make the process of transferring the property into you LLC easier. 

Here’s great thread on how to do this and things to watch out for
https://www.biggerpockets.com/forums/311/topics/328968-quit-...

This question was already answered recently by Michael here 

https://www.biggerpockets.com/forums/51/topics/1136752-expla...

DIY Cost Seg or KBKG ($500 - $1,000)

Engineering firm ($2,000 - $6,000)

Michaels post explains difference btwn DIY vs Engineering firm. 

Should you do one? That depends on your situation, what you want to get out of it, property type, how much you participate, if you plan ti sell soon and the nature of sale (e.g 1031), etc.

Lindy Peterson whether your STRs are in Grand Lake, CO, or Houston you can find knowledgeable Real Estate CPAs that understand tax treatment of STRs here in BPs Tax Professional Directory: https://www.biggerpockets.com/blog/tax-partners

Cody Shepherd First, for your wife to qualify for Real Estate Professional Status (REPS) she would need to meet the IRS requirements to be considered one.

Next, you might find this post from John Malone on Common Questions on STR and REPS helpful (great post John).

Based on what you say, it's unlikely, but the details are important and what you've provided isn't enough. I'd suggest chatting with a tax professional for more clarify and they can help you nail down the facts

Quote from @Dilini Peiris:

Quote from @Sean O'Keefe:

Quote from @Dilini Peiris:

I am trying stessa but having a hard time syncing bank info. It's giving me an error msg. I reached out to Stessa , they said contact bank. Not sure I want to go through the hassle. Anyone else had that issue? 

 Which bank are you having difficulty syncing? I can send you the link for a free trial of Digb.com.

I haven't seen any of these bank sync issues and it's setup out of the box to support real estate, like Stessa.

That's great if you can send that link. I'll give it a shot. Thanks so much 

 Great, I just sent you link to sign-up. 

Here's an article breaking down bonus depreciation at a high level that you might find helpful. 
https://tax.thomsonreuters.com/en/glossary/bonus-depreciatio...

For bonus depreciation on improvements and renovation to rental properties (long-term and short-term) you'll find the section that will be most helpful in evaluating this is -> property placed into service must have a useful life of 20 years or less and be depreciated using the Modified Accelerated Cost Recovery System method. 

In addition to reading this article and doing research to evaluate the useful life of the different elements of your renovation/improvements I'd also get help from tax pro to make sure you don't claim bonus depreciation on things that aren't eligible.

Quote from @Dilini Peiris:

I am trying stessa but having a hard time syncing bank info. It's giving me an error msg. I reached out to Stessa , they said contact bank. Not sure I want to go through the hassle. Anyone else had that issue? 

 Which bank are you having difficulty syncing? I can send you the link for a free trial of Digb.com.

I haven't seen any of these bank sync issues and it's setup out of the box to support real estate, like Stessa.