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All Forum Posts by: Sean O'Keefe

Sean O'Keefe has started 5 posts and replied 1209 times.

Post: Real Estate Professional Status/Time Tracking

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Sabrina Marie:

@Sean O'Keefe would you mind sharing the REPS tracking sheet with me?

Sure, sent 👍

Post: How do I find a good CPA in AZ

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Ignacio Bernardi:

Looking for a CPA in the Gilbert area. Starting out and need a teacher. Have one rental and just wanna start out on the right path. Thank you

I'm a Real Estate, CPA specifically focused on supporting real estate investors with optimizing their taxes with planning and also filing. Feel free to reach out if you are still looking for help. 

Post: Need an accountant

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Jack Stalnaker:

I bought my first rental property in Killeen last year and I currently live in Colorado, I was wondering if anyone knows of an accountant who can help me file this year. Any help would be greatly appreciated!

I'm a Real Estate CPA, specifically focused on supporting real estate investors with tax filing and planning. Feel free to reach out if you are still looking for help. 

Post: Real Estate Professional Status/Time Tracking

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Laura Newton:

@Sean O'Keefe can I also get a copy? 

Sure, sent!

Post: Real Estate Professional Status/Time Tracking

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776

@Landon Mizuguchi No wories, will send!

Post: Real Estate Professional Status/Time Tracking

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Sean O'Keefe:

@Ignacio Vidal Traver This thread also has a great hours tracker / activity log https://www.biggerpockets.com/forums/51/topics/816680-real-e...

Sure, sent!

Post: Real Estate Professional Status/Time Tracking

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Blake Choisnet:
Quote from @Caleb Genry:

@Mayer M. I have a spreadsheet I created for clients. Would you like a copy of it? I can share it with you if you want.


 Will you send me a copy as well? Thanks

You got it!

Post: Real Estate professional logbook example

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Blake Choisnet:
Quote from @Sean O'Keefe:

@James E. @Clive Smith I have a sample log in format that follows the IRS Audit Techniques Guides (ATGs). Let me know if you'd like a copy. 


 Will you send me a copy? 

Yep, you got it!

Post: Looking for accountant in Atlanta

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Meg Rowlett:

My portfolio and tax complexity has grown in 2024 and I need a skilled accountant to help me make sense of it and file my taxes. 

With complexity, comes opportunity! Let's chat!

Post: Setting up a management S-corp for managing rental property owned by an LLC

Sean O'Keefe
Posted
  • CPA | Accepting new clients | 50 States
  • Posts 1,219
  • Votes 776
Quote from @Nick Am:

I own a rental property through a single member LLC (say LLC-A) and I am in process of purchasing another property under the same LLC-A. Currently, I am self managing all the operations. LLC-A is a disregarded entity for tax purposes and I report the rental income/expense on Sch-E.

I want to setup a management S-corp (LLC-B) to look after the management of properties owned by LLC-A. For this I plan on charging 10% of rental income as management fees to LLC-A.

Some of the benefits of this vertical integration brought by LLC-B is:

(a) Ability to contribute to retirement plans (solo 401K, etc)

(b) home office deduction

(c) health insurance plan premium, among others. 


Some of the issues I have clarified so far from this and other forums:

1. Is juice worth the squeeze? --> Definitely. If the management fees stay in Sch-E, it is exposed to ordinary income both at Federal and state level, which is way higher than SE taxes of 9.55% (15.75-6.2 (personal social tax already maxed out)).

2. Why make passive rental income active and pay self-employment? --> Passive income doesnt mean tax free income. It is in fact taxed at much higher rate as ordinary income. 

3. Business justification of LLC-B --> This is can be a problem. However, I see this as a vertical integration and bringing more capabilities in house to make more money instead of hiring an outsider firm.

My question is such a setup valid? Has anyone done this without creating troubles with IRS? Can there be any issues due to business purpose of LLC-B? Want to hear opinion from the experts in the field here.

I'm also based in California.

  • S-Corps are generally for active income (think Flip, Real Estate Agrent) and
  • LLCs are generally for passive income (like rentals/STRs