All Forum Posts by: Steven Hamilton II
Steven Hamilton II has started 25 posts and replied 5110 times.
Post: Tax return for a partnership LLC with no business activity
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Alejandra Tapia:
@Steven Hamilton II
Such great information! I truly appreciate your feedback! Thank you so much!
Glad I could help.
Post: Reporting Personal-Title Properties on a Partnership Tax Return
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
I would highly recommend writing a memorandum of contribution and detailing out the reasons preventing clean title transfer to the LLC. and confirming that it will be done upon resolution of those issues ad to actually follow through.
I'm in agreement of the above. However, steps should be taken to correct the situation now that they are aware of the issues.
Post: Education starting out on the tax side
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Curt Smith:
@Stephen Rager buy the most recent BP book advanced tax strategies.
I read it, its very good. 5x better then prior tax books. Covers current tax changes.
For buy and hold 1st year of inservisce, you have an op of more expensing by tweaking the in service date to much earlier then day tenant moved in or post last rehab step.
Theres a bp thread. Its controversial.
It's the only tweak in the very simple and std sched E tax calc. True 179, 199a, bonus depreciation sound complicated but not really.
This new book covers all topics except creative tax strategies like in service date tweaks. It does cover cost segregation which some accountants are now offering for SFRs for Aprox $400. Read why cost seg might help your tax scenario. It's not an always do it tactic.
I'd actually advise against the book. Some of the reference material was not exactly correct and it left a ton of information out of context.
"For buy and hold 1st year of in servisce, you have an op of more expensing by tweaking the in service date to much earlier then day tenant moved in or post last rehab step. Theres a bp thread. Its controversial."
Not controversial, flat out not legal.
Post: Tax return for a partnership LLC with no business activity
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Alejandra Tapia:
@Steven Hamilton II
Thank you, Steven! Would you happen to know of an experienced CPA that could work with me? I am in the Long Beach/Lakewood area in California.
Thanks in advance!
To be honest: You definitely need to focus on someone qualified, does not have to be a CPA, could be an Enrolled Agent or an attorney. Just make sure they specialize in tax and have significant experience dealing with real estate investors.
Here is a great list of questions to ask a potential accountant:http://www.biggerpockets.com/f...
Also check out the www.NAEA.org page in your search. It should help you find someone local. If someone comes to me, I'll send them your way.
If you need help in your search or want to verify something don't hesitate to ask.
For example: I have clients worldwide and things are just as easy as I e-mail them, talking on the phone. I even use Skype and TeamViewer to communicate with clients so I'd highly recommend looking for one of the best with great references that interviews well with you.
So look for someone you can connect with that works out for your situation more so than someone located in close proximity.
Feel free to ask here if you have questions
Post: Tax return for a partnership LLC with no business activity
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Alejandra Tapia:
Do I need to file a tax return for a partnership LLC with no business activity? I've heard of a "No/Zero Activity Tax Return" but I want to get some clarification. Much appreciated!
@Eamonn McElroy is exactly correct.
Post: Vehicle Deductions?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Peter Sosnow:
@Steven Hamilton II. Can you deduct the car lease instead of the mileage?
I don't typically recommend it; however, it is an option when taking actual expenses. But keep in mind you cannot switch between the two.
Post: How or if I need to enter information from a K-1 or file a 990-T
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Michael Gorence:
Thank you all for your input. I will definitely reach out to a tax specialist (appreciate it Natalie) to confirm where I am at with this K-1. Ron- I'm not sure on the cost segregation, however, I will research.
Justin- Yes, I have invested my IRA funds. I am researching ways to avoid the UBIT tax.
Again, Thanks very much.
Michael,
One big way is by carrying over the losses generated from the investment forward. That way you can use it to offset the gain at sale.
Post: Accountant far NW suburbs of Chicago
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Hi Christle,
I'm up in Grayslake. I'd be happy to speak with you. Thank you @Natalie Kolodij and @Daniel Dietz for the tag.
Post: How much Capital gains taxes should I withhold?
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
You should look to be all in below 70% of ARV.
That said @Natalie Kolodij is correct that it is not Capital Gains it is self employment income when you are flipping properties.
Post: TurboTax or Human - Help Me Choose!
- Accountant, Enrolled Agent
- Grayslake, IL
- Posts 5,272
- Votes 2,325
Originally posted by @Chris Wilkening:
I have one property that I purchased in 2019 from a turnkey provider, so there were no expenses on my part other than getting the mortgage. The first tenant moved in in January, so there was no income in 2019.
Is the depreciation etc. something I need a professional for yet, when I haven't had any significant income/expenses on this property?
The rest of my taxes are straightforward. This property would be the deciding factor on if I hire someone, or stick with TurboTax.
Thanks everyone!
If you do use Turbo Tax consider purchasing their audit defense product. It is great to mitigate the cost and confusion of IRS letters; however, it won't mitigate poor record keeping.