All Forum Posts by: Alex Freelove

What about a situation where one partner comes with all the cash and one partner comes with knowledge side of the deal and they form a partnership. Wouldn't this be similar?

Scenario: 

A W2 employee (family business) makes bonuses upward of $50,000+. When that bonus comes through, it gets taxed heavily ($23,000+). Is there a way the employer and employee could form an LLC together and have the employer put said bonus together and match it to purchase Real Estate as 50/50 Partners to save on Payroll/Income taxes? I understand their will be income taxes on on the earnings from the Rental property (minus all deductions) but just trying to avoid the payroll/income taxes through the W2

Who do you use for construction? I have a bathroom remodel to get done here in Belgrade. 

Hi Rosemary, did you ever find a local CPA to fit your needs? I'm currently in Belgrade and looking for a CPA as well. 

Tax related question on the Capital Gains Exclusion.

- I purchased my first primary home in Feb ‘17.

- I lived in the house until July ‘19 (total 2yrs 5months)

- It has been a Rental from July ‘19 to now.

- Roughly $250k in equity.

If I sold it right now, am I eligible for the Exclusion? Or does the home need to be my current Primary house in order to reap the exclusion benefits? (Obviously I will be asking my CPA before making any decisions)

The IRS.gov site says “If you have a capital gain from the sale of your MAIN HOME” but then says you are eligible “if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale.” Which I have.

https://www.irs.gov/taxtopics/tc701

Does anyone have some insight on this topic?

Hello!

I have a question regarding the Section 121 Exclusion. Im considering selling my “primary residence “ that I have lived in for two years and have rented out for one year. I’ve got 100k in equity.

Is it true that you only get the benefit only once in your lifetime or are you able to use this exemption once every two years? I’m trying to avoid paying capital gains tax which I believe I qualify for but have been told that your only allowed this exemption ONE TIME in your life. My research says that you are able to do this once every two years.

Any CPA’s in the group able to shed some insight?

@Duc Ong

If I sold the home in California, and decided not to buy in Hawaii and just continue renting, would I pay a capital gains tax on the sale of my home?

My CPA says I shouldn’t be paying any capital gains tax because I have lived in that home for 2 of the last 5 years.

So if I owe 300k on the house, and it can sell for 400k now, I keep 100k?

@David Rucker thanks for the response. I think I’ll be refinancing my current investment property and just continue renting from my sister here on MAUI. I love the house I’m living in and I’m getting a very good bang for my buck on what I’m renting. I just don’t think I would be comfortable at all with what my mortgage payments would be here on MAUI if I were to buy.

@Jon Crosby

Thank you! I just reached out to my CPA to see if she has more info about capital gains.

Hello!

I purchased a home in 2017. I lived in it for two years and for the last year I have been renting it out as I moved to Hawaii. I am renting in Hawaii and would like to get out of that situation. I don’t have enough money for a conventional loan to purchase a home here but I’ve got about 90-100k in equity on my investment property.

I’m trying to decide what would be best in my situation.

1. Refinance my home to drop PMI and lower interest rate and continue renting in Hawaii.

2. Sell my investment property and do a 1031 exchange to purchase my primary home here in Hawaii (if I’m able to do that)

Any other options that would be good in my situation?