I'm scaling up my BTR portfolio and want to make sure I'm optimizing my tax strategy. Should I be using an LLC structure? What depreciation strategies work best? Any CPAs you'd recommend?
1 Replies
@Mike Chen,
Congrats for starting to scale. This is where things start getting fun.
I would be happy to talk with you about your personal situation.
In general putting properties into an LLC does not help your tax situation. It will pit a layer of liability coverage into your portfolio. this is the direction that many investors will go once they have gotten a portfolio that has enough size to warrant mor liability coverage.
The depreciation will be your biggest help with taxes. I would always recommend to someone doing REI to do a Cost Segregation Report. This will allow you to accelerate your depreciation so that you can right off more of the depreciation sooner.
I have worked with with a number of CPAs in the past. I have recently found one that seems to know a lot about Real Estate. Investor Friendly CPA is who I would recommend.
Please reach out to me directly for more specific information.
Best of luck.
Todd Anderson Build 2 Rent
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