I appreciate your podcasts, huge fan of both of you on youtube and otherwise.
I have a commercial office unit in a passthrough LLC my scorp rents, and since covid the office/commercial market in my area took a near 50% decline. Fortunately my other investments have been good, but you can’t win them all.
Is there any angle that I can use other than sell for loss, or perhaps 1031 exchange, hold and hope appreciation comes back (not likely all the way back)? Bought at 1.6, 1M mortgage, and while I pay rent to myself and can afford it, I don’t really need the office since we are mostly remote, and could unload it at a loss or 1031 exchange? Just looking for ideas. I could rent it but would take a 4k per month deficit (expense minus rent) if i move out and rent it. I am doing a cost seg on it to get something out of it, but I can’t think of anything else. While I am operating my business i am fine just renting it from my scorp and holding but if there is a way to unload it, I would prefer it.
Does my wife’s REPS status help with a 1031 exchange at a loss on the sale property? would i be able to write off the loss immediately versus have to wait for passive loss or have any benefit from that?
If my LLC sold to my self directed IRA, is there anything there? Maybe that would violate the rules for my scorp to pay rent to my ira or maybe i couldn’t even have my llc passtrhough sell to my iraI? I expect not but just looking for a smart out.
On another topic, I wish you would put 10 minutes into your take on maximizing a Simple IRA for a small business as employee or employer with the plan. Now they have roth direct contribution, and there is 2 year rollover regardless. I just don’t see why you don’t cover it. Would love to hear your take on it.