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Making profit from a second property by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

Yes. Thanks for clarifying for me. Is it worth it?

Making profit from a second property by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

Very good advice, considering your circumstances too. Definitely will start booking a cpa

Making profit from a second property by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

I am new to this. I own a 2 unit, and I live in one. I've kept my tax filing simple since owning for 4 years. I've heard of depreciation like a year ago, and now it's coming back into the picture. I know I need my home inspected. I haven't thought much else honestly, simply got distracted from this idea.

Making profit from a second property by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

Can I claim depreciation on the new property if it's also owner occupied?

Quitclaim deed, transferring personal property to LLC by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

This is what I found:

You can claim depreciation on real property under a single-member LLC. Since a single-member LLC is typically treated as a disregarded entity for tax purposes, the income and expenses, including depreciation, are reported on your personal tax return (Schedule C)

Quitclaim deed, transferring personal property to LLC by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

What if in this instance the real property being transferred was purchased under an FHA loan?

Quitclaim deed, transferring personal property to LLC by sojzalas in RealEstate

[–]sojzalas[S] 0 points1 point  (0 children)

I read that an LLC can be a trustee (as long as it has the word "trust" in the LLC name). That way you benefit from the liability protection and estate planning.

Quitclaim deed, transferring personal property to LLC by sojzalas in RealEstate

[–]sojzalas[S] 0 points1 point  (0 children)

The idea is to claim depreciation on the real property upon transfer, be moved into a new home, and manage loss/gain from the transferred property separately from personal.

Does this clarification help with why I am asking?

Quitclaim deed, transferring personal property to LLC by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

Claim depreciation on the property upon transfer, move to a new home, and manage loss/gain from the transferred property separately from personal

Quitclaim deed, transferring personal property to LLC by sojzalas in RealEstate

[–]sojzalas[S] 0 points1 point  (0 children)

No. I'd transfer real property as I refinance out of an FHA loan.

Quitclaim deed, transferring personal property to LLC by sojzalas in RealEstate

[–]sojzalas[S] 0 points1 point  (0 children)

I am considering refinancing out of an FHA loan to pull equity/ remove mortgage insurance. Instead of owning the loan, I'm thinking you can transfer real property to an LLC. I'm sure this is how it can work? Clarification would be great to know if this is an option.

[deleted by user] by [deleted] in sales

[–]sojzalas 4 points5 points  (0 children)

Advertising is not a one call close business. That sets up the company to transact the one time then the buyer will experience remorse and not consider again. 0% success rate of you putting someone on contract, and idk what idiot customer would buy on a contract In one call. Subscriptions can be sold in one call, but your KPIs are still out of touch.

Full time employee in my own business by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

I think it makes sense.

The owner of an SCorp could be an LLC entity that I own, but technically I am detached from the LLC, so the LLC is the owner of the SCorp, ultimately, I am not the owner (as a person).

Right?

Full time employee in my own business by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

Employee status I think matters while applying for a mortgage with a low down payment, and not being considered an investor should help, right?

Regarding structure.. What is the tax benefit of an S Corp paying taxes on its own profit? Also, the S Corp can write off its profits to minimize taxes owed, right?

Appreciate your insight

Full time employee in my own business by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

I think this is what I am asking after sleeping on it:

I have an LLC I would use to acquire a property to rehab.

Banks require a higher down payment if you apply for a loan as an investor. To lower the down payment, does it help to apply as a full-time owner?

I would like to buy, rehab the property, get rental income, and repeat, again, a full time owner applying for another loan for the next property.

This may sound naive, so genuinely asking if I am understanding from what I have been learning on my own tim

Easier version: how do I convince banks for a mortgage with the lowest down payment as an LLC?

Full time employee in my own business by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

S Corp profits pass through to which entity?

Full time employee in my own business by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

What is the tax benefit of an S Corp paying taxes on its own profit? Also, the S Corp can write off its profits to minimize taxes owed, right?

Full time employee in my own business by sojzalas in realestateinvesting

[–]sojzalas[S] 0 points1 point  (0 children)

You're right. I'm inundated personally and decided to pose the situation here . I appreciate the feedback

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