All Forum Posts by: Yonah Weiss

@Nikki Kofkin

If you're looking to go remote, I can highly recommend @Daniel Hyman CPA, and his firm My Online Accountant, LLC based out of Milwaukee.

Definitely well-versed in real estate.

Best of Luck!

@Lonnie Freeman great success story, keep up the good work!

Two important lessons stood out from your deal. One you mentioned, which is talk to a lot of smaller local banks. They are usually the ones who will give the best terms to newer investors.

The other point that jumped out at me, was your strategy of paying the distressed seller CASH (I'm sure that helped close quicker) and keeping the original mortgage. Sometimes the hardest part of closing on a deal (especially when it's time sensitive) is the banks, trying to close on a mortgage. Brilliant strategy!

@Joe P. Have you reached out to Tina Pittman

I don't see why this is so clear at all. The new bill mentions 1031 can only be applied to real property (1250), as opposed to personal property (1245). I assumed that is coming to exclude like-kind exchanges of planes, cars, equipment and the like, which was common practice to off-set capital gains. Not the 1245 property within real property.

My understanding, and correct me if I'm wrong was that is: 

In general, the definition of real property under section 1031 is determined by state law. In contrast, the definition of real and personal property (1250/1245) for tax-depreciation purposes is determined under federal law. State law tends to classify fixtures in a building as real property. Therefore, property such as wall coverings, carpeting, special purpose wiring or other installations affixed to the building can be considered real property under state law and like kind for section 1031 purposes, but personal property in cost segregation studies. Thus, real estate owners can benefit from both the gain deferral under section 1031 for real estate exchanges and the enhanced cost recovery deductions of the cost segregation study.

@Dave Foster you posted about this a few days ago as well.  Has anyone heard anything concrete that the definition has changed, or are we just speculating?

Phone and email are still preferred methods of communication for me.

Texting, I find has usually way too many spelling mistakes because of auto-fill, which is annoying. You don't know if they really want to rent, or they live in a tent or his name is Kent...you get the point.

Please, if you insist on texting, not while driving :)

@Matthew Paul I think @Clancy Catelli has a very creative idea. Even if you have another full-time job, and can't start a new business in your home you can do something I heard from Grant Cardone, called affiliate marketing. Basically you pay around $100/month to become a member, and you can rent a room in your own house to yourself as an office, and write-off a ton of other normal expenses. 

I am not a CPA and you should for sure speak to your accountant first.

@Brandon Hall very concise and complete, as usual.

@Daniel Hyman thanks for the resourceful link as well.

With regards to 1031 like-kind exchanges, they had proposed focusing more on 'real property', 1250, as opposed to 1245 personal property. Any change on that?

@Christian D. I know this is a few months late, but feel free to PM me. I could help you with this question.

@Scott Skinger The loan looks great! Do you have an LOI on the terms of the loan or is it just speculation? If just speculation, I would consider a few other possible loan scenarios because that could change the deal significantly. It looks like a solid deal at face value. Of course, I don't know the market in suburban Chicago so well. Good Luck!

@jeff kehl Just for sake of clarification, and feel free to discuss this with any CPA specializing in Real Estate. @Brandon Hall @Daniel Hyman, depreciation is not considered a passive loss, it's defined as an expense. Now, if depreciation or, accelerating depreciation will cause so much 'expense' that it will put the property in a loss, then you would be correct in saying that a non 'real estate professional' has a limit on taking a passive loss, and cost seg would not be beneficial for them.

However, cost seg is the best thing since sliced bread for real estate investors, if your property is income producing. Which is why cost seg is often referred to as a cash-flow strategy, to lower your tax liability, and keep the money in your pocket to reinvest. If your property is not income producing, then there isn't any cash-flow to discuss. 

Furthermore, if high net worth individuals are throwing off passive losses, then cost seg will be beneficial for them as well!