All Forum Posts by: Account Closed

 Of course! Im here if you have any questions. Good luck in your search! 

Hi @Anna Likhacheva, 

As accountants, we are not allowed to self-promote. That being said we have helped 100s of clients do what you are doing and could do the same for you. In your search, be sure to find an accountant that is willing to grow with you, and is not too high priced. The problem I see often with accountants on here is that they are specialized in larger investors, and have really high prices.

Hey @Jolee Zhao

I would look for a firm that you can grow with along the way. Lots of firms often times have niched down and only work with larger investors. For example, we work with real estate investors big and small, and have fair pricing along the way. The firm I worked with in the past charged me massive fees, largely because we were higher income and they didn't back it up with value. Beware of these traps!

Funny you mention RSUs. We just helped my friend who works at google with a mistake he made when paying taxes on his RSUs the past few years and saved him over 15k in taxes just from amending prior year returns! 

This is only possible with the "short term rental loophole". 

For individuals navigating the demands of a w2 job and grappling with substantial tax obligations, exploring the potential of short-term rentals unveils a compelling avenue to mitigate tax burdens. A noteworthy tax loophole, particularly beneficial for those yet to attain Real Estate Professional Status, offers a strategic approach to potentially offsetting OR EVEN ELIMINATING the impact of high job-related taxes.

At its core, this tax loophole revolves around discerning between passive and non-passive activities within the realm of rentals. Those whose rental pursuits fall under the non-passive umbrella may find solace in this tax-saving provision. The federal tax code establishes stringent criteria, including guest stays limited to seven days on average and the provision of basic hotel-like services, to qualify for this advantageous tax treatment.

Understanding the mechanics of the short-term rental tax loophole is imperative. Section 469 of the federal tax code initially classified all rental properties as passive. However, an essential exception emerged in the 1990s, allowing specific rental income to be categorized as non-passive. To leverage this benefit, prospective property owners must engage in short-term rentals and provide substantial services to guests, such as daily cleaning, meal provisions, or transportation services.

Additionally, navigating a material participation test becomes crucial. This entails dedicating a significant amount of time and effort to the short-term rental business. Meeting the test criteria, which includes working over 500 hours in the business, overseeing all necessary tasks personally, or substantially participating alongside a partner, facilitates the strategic utilization of the short-term rental tax loophole. For individuals tethered to a W-2 job, this presents an opportunity to judiciously manage their tax liabilities while exploring supplemental income avenues.

We sure do! We are accepting clients for the 2023 tax year if you would like to take a look at my bio for the website and contact us form. 

Hey @Neelam Khanna

I would look for a firm that you can grow with along the way. Lots of firms often times have niched down and only work with larger investors. For example, we work with real estate investors big and small, and have fair pricing along the way. The firm I worked with in the past charged me massive fees, largely because we were higher income and they didn't back it up with value. Beware of these traps, and good luck in your search!

Hey Evan Bermudez
and Andy Edgemon

I would look for a firm that you can grow with along the way. Lots of firms often times have niched down and only work with larger investors. For example, we work with real estate investors big and small, and have fair pricing along the way. The firm I worked with in the past charged me massive fees, largely because we were higher income and they didn't back it up with value. Beware of these traps, and good luck in your search!

We help investors with STR situations all the time, and this is a common issue we see. This may conflict with the "usage" rule where you can only stay in your STR for a certain period of time during the year. That being said the IRS doesn't "check" but if your audited they could find out and get you in trouble.

Hey @Charlotte Farrell

I would look for a firm that you can grow with along the way. Lots of firms often times have niched down and only work with larger investors. For example, we work with real estate investors big and small, and have fair pricing along the way. We are very familiar with the STR "loophole" to get w2 income offset by losses on the STR's. We can also amend your prior returns to try to get you tax money back you may have missed in the past.

The firm I worked with in the past charged me massive fees, largely because we were higher income and they didn't back it up with value. Beware of these traps!

Also keep in mind some of the best accountants serve multiple states, so don't feel like they need to be in your state to do a bang up job. In fact its likely that since that person is working in multiple states is because they are doing something right!

Hey @Jack Elliot!

I would look for a firm that you can grow with along the way. Lots of firms often times have niched down and only work with larger investors. For example, we work with real estate investors big and small, and have fair pricing along the way. The firm I worked with in the past charged me massive fees, largely because we were higher income and they didn't back it up with value. Beware of these traps!

Also keep in mind some of the best accountants serve multiple states, so don't feel like they need to be in your state to do a bang up job. In fact its likely that since that person is working in multiple states is because they are doing something right!