All Forum Posts by: Soh Tanaka

I've done what you described and didn't see any special tax. It was a 1031 exchange. 

I am not going to recommend it on a public forum, but people do what you are trying to do all the time without any issues, despite the clause.

Where did you get the information that IL will tax you if you don't invest your sales proceeds to another property in IL?

This is obvious, but different REIA (real estate investors association) run differently. Some clubs are more about bringing in a sales person and have a product/service to purchase at the end of the presentation with discounts. Other clubs are all about education and networking. I personally find more value from those clubs who are about education and networking.

Many people just deed over the personal rental properties to LLC all the time. I never heard of anyone getting into a trouble with it. Not necessarily recommending but just stating what I know.

MileIQ is great! I use it also.

Are you asking if it's possible to deduct the whole cost of the purchase? If so, then the answer is no. Down payment is not deductible either. 

Have you thought about using QuickBooks?

Nothing wrong with using a spreadsheet for now, but at the same time, it might be wise to invest in QuickBooks and start using it. It's a great software, and resources are plenty, many of them for free. I would recommend to go with the desktop version, as the online version could become very expensive very quickly.  

I'm not an accountant, and I'm not a lawyer, but in my opinion, having one LLC per property can be considered overkill, unless there's a lot of equity in each property.

While technically you have to have separate books for each LLC, if you just use the class feature in QuickBooks, you can quickly separate books by property/LLC.