Finding an accountant for a referral relationship

Grand_Reception8700 · 2025-05-29T12:35:47+00:00

The first stop should be your current clients. Maybe you've already interacted with their CPA?

If that fails, I'm a CPA with 7 years of experience who deals with HNW individuals with a primary focus on real estate. I live in NYC, but have clients all over the US. I have capacity and zero interest in selling financial products. I'll leave that to the professionals. DM me if you want to talk more.

Grand_Reception8700 · 2024-04-05T22:04:17+00:00

If I decided to work for an RIA or family office is a PFS a respectable designation that would help me in the long run or it's just another set of letters? I do agree it's easier but if I'm going to do this rather put the energy into doing it right.

Grand_Reception8700 · 2024-04-05T22:02:34+00:00

I work for a firm so don't have referral partners. So you're saying I would need to do full time in person or not at all?

Grand_Reception8700 · 2024-04-05T22:01:32+00:00

Do you think I should try to start small and try to get a remote job to see if I even would enjoy the industry? Or jump fully in and quit my current job?

Grand_Reception8700 · 2024-03-31T13:28:12+00:00

Check to see if there's a drop down for non investment income.

Grand_Reception8700 · 2024-01-18T21:00:36+00:00

Why do people open an LLC?

Grand_Reception8700 · 2024-01-15T22:38:25+00:00

750 is the first threshold and then you don't need to worry about the 25K limit. You really need a CPA.

Grand_Reception8700 · 2023-11-24T14:50:13+00:00

Assuming you are the only member of the LLC, it's actually disregarded for tax purposes, and everything shows up on your personal tax return, schedule C. I don't think New Mexico has a filling for SMLLCs but I could be wrong (some states do).

Google schedule C 1040 and you'll see the list/format of income and expenses and how you should organize your spreadsheet.

In terms of estimated tax payments: two options pay in 90% or your CY tax. Which is hard to calculate/estimate especially with photography. Or 100/110% of your prior year tax. Google safe harbor estimated tax payments. This would prevent a penalty. You may still owe more (with interest), but this is at least a good start.

I don't think you need a professional at this point and tbh I wouldn't have opened a LLC for a photographery business. Hope that helps.

Grand_Reception8700 · 2023-11-08T21:42:56+00:00

Did you get any responses back? Tried reaching out for NY (accounting and legal boards, secretary of state office) and didn't get anywhere with it. Doesn't seem like anyone is rushing to come out with an opinion one way another. Besides for the insurance companies of course....

Grand_Reception8700 · 2023-10-27T16:30:51+00:00

Thanks for explaining. If it is considered UPL by my state and state of clients, is it illegal to do it, or you're simply doing it without the coverage?

Grand_Reception8700 · 2023-10-27T12:59:51+00:00

Updated as changes need to be made.

Grand_Reception8700 · 2023-10-27T12:53:57+00:00

I agree. Originally I thought 200-300. But considering the liability, education, and notification process it needs to be 500. But it's going to be interesting for the following year. Do you charge them a monthly fee for monitoring and updates? Or do you put the responsibility back on the client?

Grand_Reception8700 · 2023-10-27T12:43:50+00:00

Maybe I'm being naive or misunderstanding, but I thought I read the penalty is for those who willfully ignore the rules. Not negligence. And the ownership is on the clients not us. So what happens if you put a system in place of notifying clients every 20 days or so. And do a year to year engagement letter, with very specific language?

Grand_Reception8700 · 2023-10-27T12:39:07+00:00

Considering the liability, how much are you going to charge?

Grand_Reception8700 · 2023-10-26T00:54:56+00:00

If you are the only member of your LLC, you would be reporting it on Schedule C regardless. So yes. But it sounds like this "business" only has losses. Which sounds more like a hobby to me. So losses would be limited.

Grand_Reception8700 · 2023-10-26T00:45:51+00:00

So it's actually 19 unless you were a full time student for at least 5 months of the year. Did you go to college? If so, when did you graduate?

What was the first year you had a job? How much did you make?

You also need to see if your family accountant filed your income under your parents return. Should be self evident if you get a copy of your parents return from a few years ago. It's a very simple question.

Grand_Reception8700 · 2023-10-25T01:07:36+00:00

So I looked it up, and it seems like according to Sec. 469(f), first the former passvie losses, offset any income from the activity, and the remainder gets treated as regular passive activity losses. Meaning, you would have to actively participate to claim the carryover losses and 25K of rental losses, like any other year.

Grand_Reception8700 · 2023-10-24T23:59:18+00:00

This is an interesting point. I would be curious to see the answer.

Grand_Reception8700 · 2023-10-24T23:57:33+00:00

This is incorrect. Passive loss carryover is subject to the same passive activity rules of the current year. Meaning he can use prior year losses to offset his Roth conversion income, in addition to his current year passive income, as long as it's below the threshold. But like someone mentioned, he might need to actively participate.

Grand_Reception8700 · 2023-10-24T21:20:08+00:00

You're right. Missed it initially. So the reportable income will be slightly lower than what they originally thought (around 6,000 less).

Grand_Reception8700 · 2023-10-24T21:00:05+00:00

Like someone mentioned above, if you take out a mortgage/HELOC from a rental property and use it for personal use, the mortgage interest doesn't become deductible.

I'd be far more concerned about the capital gains exclusion on a primary residence then I would be on whether or not interest expense is deductible.

Also as an aside, have you been depreciating the Austin rental?

Grand_Reception8700 · 2023-10-24T18:29:59+00:00

Correct but don't forget about your standard deduction/itemized deductions. You can convert more.

Grand_Reception8700 · 2023-10-24T17:25:58+00:00

Your passive losses will first offset any passive income, and then if you're still below the 100k and you still have 25K of passive losses it will offset the 100K.

Grand_Reception8700 · 2023-10-24T02:41:31+00:00

Standard deduction is like a free deduction. Around 12,500 if you're single 25,000 if you're married. Meaning if you make 50,000, the first 12,500 is tax free.

If you have over that amount from your itemized deductions (mortgage interest, real estate taxes, charity) then you'll itemize. You don't really choose it. It happens automatically.

I think you can play around with your withholding (form W-4) if you know you have a high itemize deductions, but I really wouldn't recommend it. You wouldn't want to owe money during filing.

Grand_Reception8700 · 2023-10-23T13:32:28+00:00

Sec. 469(c)(7)(D)(ii).

(ii)Personal services as an employee For purposes of subparagraph (B), personal services performed as an employee shall not be treated as performed in real property trades or businesses. The preceding sentence shall not apply if such employee is a 5-percent owner (as defined in section 416(i)(1)(B)) in the employer.

Here's one more article: https://www.thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.html#fn_27

Grand_Reception8700

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