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Messages - cfoleverage

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Taxes / Re: To LLC or not?
« on: March 12, 2018, 09:29:00 AM »
An LLC is more an asset protection and segregation of liability device more than a tax strategy method. Setting up one or more single member LLCs would end up with the same numbers on your Federal returns, but with increased fees and filing costs. You could consider an LLC electing to be taxed as a C-corp or an S-corp if you want to think about different taxation results, but the devil is always in the details, so to speak, and the decision for whether another structure for your business would best be made by a professional who knows all the details.

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Real Estate / Re: Real estate project in Mexico & tax loss question
« on: February 13, 2018, 01:54:52 PM »
Ah, I see...

So unfortunately, the cost to buy and build the Mexican property will not be deductible, except for depreciation on the building once placed in service, i.e. once advertised for rent. The cost to maintain the property once placed in service may be a deductible expense and help offset gains in other places, <IF> the property is being used as a rental property. Be sure to research personal use of rental property if you intend on staying there for any amount of time, since personal use can disqualify these expenses.

Still unconvinced this is going to get you the result you want, as personally, I never plan to lose a dollar on my rental properties just to save a quarter on my tax return...  ;)

3
Since this was done in February of 2017, you just have to go by the old rules. The new tax cut was not retroactive, except for part of the bonus depreciation rules were retroactive to Sept 27, 2017. Since your improvement was done prior to Sept of 2017, it would be under the old rules for "qualified improvement property" eligible for 50% bonus depreciationand 27.5 yr life for the remaining basis.

Try this link for more info: https://www.forbes.com/sites/anthonynitti/2018/01/02/tax-geek-tuesday-changes-to-depreciation-in-the-new-tax-law/

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General Discussion / Re: When will tax cuts affect paychecks?
« on: February 11, 2018, 11:54:52 AM »
Nothing more specific can be stated, because it depends on each company to decide when to update their payroll software to match the new tables that are already available.

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Real Estate / Re: Real estate project in Mexico & tax loss question
« on: February 09, 2018, 09:35:54 AM »
Key details seem to be missing from your question.  What losses are you expecting? Are you intending on losing money on your mexican property?

Buying land and building a home are typically investment activities and a loss does not occur until you sell such an investment for less than you paid for it...

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General Discussion / Re: When will tax cuts affect paychecks?
« on: February 09, 2018, 09:32:28 AM »
This depends when your company or payroll provider update their records for the changes. The new tables are out and available, so for the company I'm responsible to run payroll for, the changes went into effect for the payroll I ran today. (First PR of February).

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Real Estate / Re: Housing Real Estate in an LLC
« on: October 16, 2017, 11:20:17 AM »
Holding Real Estate in a LLC is quite common, but probably not as necessary as it is often hyped up to be. I currently own 2 single family rentals and hold them in my personal name, not an LLC. If my rental activities increase, I might look into one again, but for now prefer the approach recommended by your atty to use an umbrella policy to reduce liability.

I'm a CPA in TN, and this is how I handle my personal investments to avoid the minimum LLC filing taxes and fees.

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Wealthy Accountants in Your Area / Real Estate focused CPA in Tennessee
« on: October 06, 2017, 11:51:34 AM »
Hi all - thanks to Keith for giving a shout out today about the possibility of using the forums as a place to introduce our services.

I'm a CPA who is currently (Q4 2017) transitioning from a generalist to a spec ialist. Have 10+ years experience in accounting, mostly in public accounting, but the last couple of years in a CFO type role for a local organization. Now setting up my own real estate focused niche accounting firm. I've worked with real estate investors and businesses over my 10+ years in accounting, and due to my interest in the FIRE community, along with the real estate investments that allow many to reach their FIRE goals, have decided to use my accounting and tax knowledge to help others leverage their real estate investments into financial freedom.

Let me know if you want to hop on a call to discuss your situation and see how I may be able to help you reach your FIRE goals through optimizing the accounting and tax situation of your real estate investments.

Daniel
dweaver@cfoleverage.com
(website will be up soon!)

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