No automatic tax savingsThis is the biggest misconception.Income is taxed where the property operatesFlowing money from one LLC to another does not eliminate or reduce taxesIf both LLCs are pass-through entities, income still flows to you personallyAny “tax savings” claims usually involve:Poor explanationsAggressive structures that don’t survive auditsOr strategies that require multiple entities and a CPA to implement correctly4.

I want my clients implementing good practices at the start and getting their systems lined up BEFORE they have multiple properties.

Is it implementation?

Is it implementation?

Sure, you can be comfortable with the strategy itself and its implementation, but we stress the importance of creating a DEFENSIBLE strategy in the event of an IRS audit, allowing you to KEEP the deductions you received and ultimately providing you with confidence when your return is filed.Also, the more detailed your time log is, the easier it is for a tax advisor to review and point out what hours will stick when an IRS agent takes a look at your log.Things you can consider to add to strengthen your time log: Screenshots of time spent on calls with contractors/cleaners/etc.Pictures of work you are completing (i.e. painting)etcChris Tile, CPA

All it requires is one with hardware access and the desire to implement it for such. 

And it will take years to implement.

We did not have a trust, and set about having a trust implemented, and then we implemented the rest of the tricfecta. 

That broader framework is something I’m actively working to understand and implement.

Is it more effective to implement cost seg on new construction vs. existing?