Natalie Kolodij, EA

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. @RETaxStrategist @bradmessner @TGorcz I started the @InCiteCommunity with the 3 of them, and honestly, they are the smartest tax people I know. I'm super fortunate to get to work with them every day!

@DJFochs These are unrelated code sections. SE tax qualifying due to substantial services moves a rental to schedule C. And any property where >50% the units are on a transient basis defaults to 39year non residential. Not stuck, life can be adjusted if stay > 30 days in a year.

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So, let's talk about BOI Reporting. Lots of wrong information is circulating. #TaxTwitter #BOIReporting #FinCenBOI (Additional resources below)

@talking_biscuit @BuffCpa I don't know off hand. It was just a post I scrolled past in a finance group. I know some of the usda 0% down rural loans are for low income specifically.

@RETaxStrategist @BuffCpa JHC! And here I've been waiting until all debt was paid off and my FICO was back up in the 800's (almost there). OK, so...buy *where*? What state/area? And (if you know) do they have especially high income?

Rent is the maximum you will spend each month for a place to live. A mortgage payment is the minimum you will spend each month for a place to live. Can someone buy with $2k saved? Maybe. Should they? Likely no. #realestate #taxtwitter #rei

@talking_biscuit @BuffCpa They can. This was based on an actual post in a finance groups. Someone with a 617 credit score and 2k in savings just qualified to buy.

@RETaxStrategist @BuffCpa if that's ALL they have in available resources, is $2k in cash. I don't see someone in that position qualifying for a mortgage though.

@andreamacdcpa Yup. I'm obviously big on REI but I buy very specifically. My current primary has an apartment attached. Many people just buy to buy. Because it's what you're told to do...and for some it can cost more . But it also just terrifies me when someone has no savings.

I heard on X that it’s always better to buy than to rent, so that’s the only opinion I’ll be having from now on. JK. I have owned my townhouse since November 2009. Since then, I have paid my principal down by only $65k, despite having made over $200k of mortgage payments, plus I’ve paid over $60k in repairs and updates over these 15 years. My house is work $70k more now than when I bought it, so $115k or so I’d walk away with if I sold it (after selling expenses) doesn’t exactly feel like a windfall.

@BrianDavisTax @andreamacdcpa I'm big on real estate investing. No argument it's a wealth builder. My point was just those with no reserves can end up bankrupt if there is one unexpected repair, insurance doubles, taxes go up ect. $2k and a first time home buyers loan isn't always a good choice.

@andreamacdcpa @RETaxStrategist Buying is long term wealth. You have to measure what you’re spending over 50 or 60 years.

@BuffCpa The rent can rise year to year...but so can taxes and insurance. And a LOT of people had those double in the last year or two. And I was thinking the unexpected costs. Unforseen repairs. Someone who only saved $2k is likely not in a position to handle a costly emergency repair

@RETaxStrategist That seems backwards. We had been renting for three years and it has gone up 5-10% each year. We’re finally buying again and are happy the P&I is capped, while paying down debt and having an asset that increases.

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@talking_biscuit @Tyler_Menzer Sure shoot me a dm

@RETaxStrategist @Tyler_Menzer You probably know, but I'm happy to share in DM.

Huh. Shareholder loans under $25k don't require a formal note (according to the CE Presenter). I've always required formal notes on any amount. #TaxTwitter

@talking_biscuit @Tyler_Menzer This is the issue with a lot of the CE. You shouldn't have to go fact check and look for citations....large factual claims should come with some type of citations in the slides or supplements. I'm not sure why it's not standard practice. I've got a good idea who this is too.

@Tyler_Menzer Exactly! This guy has 30+ years experience as an EA. When I get a moment I'm going to look it up, because I swear everything I've always seen said all SH loans, no mention of diff rules for under $2.5k. I could be wrong, it's happened before...😂

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@cordes_tax It excludes it from inventory accounting methods. Inventory is a type of current asset...whether listed there or as an OCA won't impact anything tax wise.

@RETaxStrategist I always capitalized and treated as inventory until the house was sold. My question is should it be listed as an other current asset or inventory on the balance sheet if 471 excludes real estate from inventory.

It is a good thing when you've been doing something one way for a while and then something makes you second guess an you have to look it up. Do you know how many times I 'inventoried' real estate for house flippers? #TaxTwitter

@patmortoncpa @cordes_tax Those costs are on the balance sheet as an asset and essentially inventory. It's just a direct cost. We can't use inventory accounting on real property like LIFO, weighted average, ect

@cordes_tax Interesting. So for a Sch C house flipper, we just don’t show those costs anywhere until the house sells? I have always shown this as inventory as well.

✨On this week's episode of Real Estate Is Taxing we chat about a recent tax court memo. TCM 2024-76 covers a taxpayer renting their luxury condo to their S-Corporation, writing off a $92,000 SUV, and the impact his extramarital affair had on things podcast.natalie.tax

InCite online community hit 200 members! 🥳 That's 200 people who now have a safe place to ask tax questions, and get responses with references and citations If you're a tax professional looking for a community to help you grow check us out incite.tax #taxpro