EP.19 // Q&A with a Real Estate Tax Professional w/ Yuri Kapilovich
On today’s show we have our first return guest! Say hello again to the Owner of Kapilovich and Associates, LLC, CPA Yuri Kapilovich.
On today’s episode we have our first return guest, CPA Yuri Kapilovich, owner of Kapilovich and Associates, LLC. In this episode Yuri answers questions from our audience all about real estate tax. In this episode Yuri talks about Quickbooks, cost segregation, and how David Choi is better than the bank!
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Key Points from This Episode:
Yuri gives advice about people who are thinking about opening a business bank account. Yuri suggests that if you’re making over $5,000 a year, it’s worth it to open a business account, or at the very least a separate account. Use that card for the business only and you’ll know exactly what expenses are for the business
Yuri talks about Quickbooks; he says if your system isn’t broke, don’t fix it! Some people use a separate bank account and an excel sheet: that’s it! Quickbooks becomes handy when you’re at 100 transactions a month. It helps handle larger transactions and uses AI.
A piece of advice from Yuri: if you’re using Quickbooks, run a comparison such as a profit and loss statement. You’ll be able to see where you’re spending your money and have more context on your expenses
In terms of working with an accountant: you’ll know when it’s time. If your income is simple, it won’t be a big deal to use Turbotax. As soon as you’re getting complicated with your self employment and begin investing it’s time to look for an accountant.
You should form an LLC as soon as you can: this will protect you from certain liabilities in your real estate journey. Set up a generic LLC and file a DBA to do business under another name. You can even set up a specific LLC for each property you own as to not expose your other investments to liability with one specific one’s issues.
Yuri talks about cost segregation depreciation. You can expense certain supplies that you use to renovate your assets. The IRS wants to drag your depreciation out over a long time, but cost segregation is a tool to allow you to take a larger chunk of your depreciation up front.
Do S-corps make sense in Real Estate? Can S-corps give you write offs? Yuri says this question is a bit nonsensical seeing as you can get write-offs in any business structure. S-corps are made so you don’t have self employment taxes like an LLC, but you don’t even get taxed on that in a real estate context. It also limits the ability to bring on partners with complex series of ownership.
Yuri talks about the pros and cons of bonus depreciation
Relevant Links from Today’s Episode:
ABOUT YURI KAPILOVICH
Yuri Kapilovich is the Managing Partner of Kapilovich & Associates, LLC. With over a decade of working at some of the largest accounting firm specializing in high net-worth individuals and closely-held companies across many aspects of the tax lifecycle — planning/forecasting, compliance and consulting. Yuri is excited to bring his knowledge to his current and future clients. Additionally, having experience in some of the most complex aspects of the tax world, he provides consulting & training services to smaller CPA firms to assist with efficiency & growth.
He graduated with a Bachelor of Science in Accounting From Rutgers University and a Master of Science in Taxation from Philadelphia University.
He is a Certified Public Accountant licensed in the state of Florida, New Jersey and Pennsylvania and is a member of the following professional organizations: American Institute of CPAs (AICPA) and Florida Institute of CPAs (FICPA).
