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All Forum Posts by: Robert P.

Robert P. has started 50 posts and replied 358 times.

Post: Lead Paint...uh oh

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Chris Simmons:

My answer is it does not change things but I would not be surprised if they could get an attorney to prove otherwise.  Why would the health department release the findings to them and not just you?

What kind of house your renting that requires multiple visits from the health department to begin with?

 Board of Health came (she said because department of child services was called by her ex-boyfriend) and we got a letter of minor things to fix. We fixed them all and called for a post inspection. When the inspector came, she started adding things to get fixed. (now caulk around kitchen sink, ant problem?, and now they were testing for lead paint.

I'm not the landlord, but a family member of mine is and I'm just trying to help them through this process. The tenant did not get results yet, either did us. Not even sure if the lead test occurred yet. 

I'm a little upset that certain things were not addressed, including possibility of lead paint the first time they came. But it's not my property so I cannot talk to the inspector about that "mis-communication" lets call it. 

p.s. we have an attorney, a very good one. I don't think she will be able to afford a good one, or one at all. (not sure how good the free ones are?)

Post: Lead Paint...uh oh

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113

Say someone has been renting an apartment to a family with 2 kids under 6 for the past 9 months or so. We are a day away from giving them their 14 day notice to quit for non-payment (in Massachusetts that is what you do). In the past couple of weeks the board of health has been there for very minor violations (that were all fixed) but now inspector is talking about lead paint testing.

Questions:

1. If test comes back positive from inspector, how does that change (if at all) my eviction for non-payment?

2. Would the landlord be required to de-lead the unit even though they are being evicted?

3. Any lawsuits, etc involved since they have been living there for 9 months with potential lead in unit?

Of course, this is all if the test comes back positive, so all hypothetical questions. Just trying to be prepared for what could possibly happen. I know lead paint is a huge issue in MA, so I would appreciate any and all feedback regarding this. 

Post: How will buying a 200k house and renting out impact Taxes?

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Linda Weygant:
Originally posted by @Jane A.:
Just take any online tax software ( I use HR Block) and it will calculate everything for you. Just keep a track of all your income and expenses for this property. Online tax tool will ask you all questions and has a lot of comments for everything. It is fun to do it yourself as well. By the way tax professional from HR Bloch cost you below 1K for whole year unlimited access, you could discuss anything anytime. I like this opportunity.

I think if the OP had half a clue, this might be decent advice. But TurboTax and the like do not walk you through carving out a portion of the purchase price to allocate to land. It doesn't talk about the VERY subtle differences between capital improvements vs Repairs & Maintenance. It does not talk about the different items on the HUD-1 and what are capitalized and what are current expenses.

@Robert - here is a VERY general breakdown of the scenario.

You file Schedule E to report your rental income and associated expenses.  From a cash standpoint, this should give you positive cash flow (or profit).  However, one of the expenses you will report on your Schedule E is depreciation.  You essentially take the total basis of your profit, divide it by 27.5 and you can deduct that amount every year against your profits.  This is often referred to having a cash profit but a tax loss.  

If you are in this situation, you may or may not be able to write off these losses depending on your overall tax situation such as other passive losses you may have, your overall income and other deductions, etc.  

If you have a tax profit as well as a cash profit, this can bump you up into the next bracket.  This is why you are being advised to seek a competent tax professional right now.  There are too many variables for anybody to accurately tell you what impact this will have for you.

 Thanks, Linda. I did not know it was this complicated, and I appreciate the folks on BP letting me know this! I have something set up with a local CPA to discuss my personal situation. I appreciate the explanation of the Schedule E and property depreciation.

Post: How will buying a 200k house and renting out impact Taxes?

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Jane A.:
It may really decrease you taxes as your rental house depreciation will work against your income, as well as your closing expenses including appraisal and inspection. Just start communication with your tax advisor right now and you will get more details.

 I don't have a tax advisor at the moment. Perhaps I should look into getting one. Would you say that is extremely important to have? This is my only property and don't plan on acquiring any others for years to come.

Could you elaborate on what you mean by the depreciation working against my income, closing, appraisal and inspection?

Post: How will buying a 200k house and renting out impact Taxes?

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Brandon Hall:

@Robert P.

Unfortunately, you won't receive accurate advice (at least nothing that I would follow) because you haven't provided nearly enough information for anyone to tell you how it will impact your tax position.

Sure, we can speak in very broad terms and say that your AGI will increase, or you will either take passive losses or they will build up over time, but none of that information will help you because it isn't specific to your unique situation.

This type of question is best to be had with a real estate CPA who will look at your prior tax returns, seek to understand your current tax and financial position, and then have an informative conversation with you about how this will affect your tax position now, and in the future.

 Generally speaking, what things could be impacted? Is it only my AGI? You seem to know more about this than I do. I'm just looking for areas of concern to then go forward and investigate/have a conversation about.

Post: How will buying a 200k house and renting out impact Taxes?

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113

First time buying a home. Home is in Massachusetts. Will be renting it out. 

Any clues on how my year end taxes (not property taxes) will be impacted by purchasing a home, and now having more income coming in. (besides putting me in a higher tax bracket)

Anything I should be prepared for? Sorry if this question is broad.

Post: Evicting but Accommodating Problem Tenant

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Marcia Maynard:

If your attorney is well qualified in landlord-tenant law for your jurisdiction, follow their advice. In fact, have them do the entire eviction process on the basis of non-payment of rent. Separate your emotions from this and document every interaction that you have with the tenants. They obviously are working the system, so you had best respond with the full expertise of the attorney.

 Thanks! I have the best atty in my area. He's been doing landlord/tenant law for over 30 years now! With that, I probably shouldn't be scared at all. Helping out a relative. 1st ever eviction.

Post: Evicting but Accommodating Problem Tenant

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Karen Bickford:

hi Robert. as you already know or you will find out soon that Massachusetts is one of the hardest states in the country to get evictions especially on moms with 4 children.it sounds like she knows the Massachusetts statute on eviction and is using that by calling in the Board of Health whether she did it or boyfriend did it;she is an addiction waiting to happen.I would get started on filing the eviction sooner than later just document everything

 agreed. I just don't want the courts saying we are doing it because of the board of health notice. We've been meaning to evict, and now this issue gets involved...great

(p.s. this is actually a relative I am helping out getting things fixed and having the proper atty. if it were my property, I would serve them the notice the day they were late.) That is what also scares me is that I have not been managing this tenant, so I am not 100% aware of everything that has been going on.

Post: Evicting but Accommodating Problem Tenant

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113
Originally posted by @Alexander Felice:

1. I don't know the laws regarding this, but my guess would be you could still evict. The tenant is sure to give you a hassle about it

2. you want to give them a credit for rent, 

which is late

for a tub you had to replace because a hassle they caused

because you inconvenienced them?

no, no, so many times, no

3. I don't think or see why any of that would be an issue. 

What the underlying issue here is, they have you rattled. It's obvious in your post that you're scared of the ringer they may drag you through, which is fine, except you can't let it affect your decisions like this. You just have to accept that they are a PITA and move forward like you normally would. Giving them a rent credit and tip-toeing around issues like this will only make things worse for you and create more resentment. Decide to evict, get your house in order and move forward! 

I don't think it'll be that bad honestly. Keep us posted friend 

 Thanks for the advice. I just want them out, with as little hassle as possible. I will keep you posted on what happens.

Post: Evicting but Accommodating Problem Tenant

Robert P.Posted
  • New Bedford, MA
  • Posts 361
  • Votes 113

Situation: Current tenant says board of health was called because department of child services was called from ex boyfriend who said my apartment is not safe for a child to live in.

Results: I received a list in the mail of things that needed to get fixed. Items include: loose door hinges, toilet handle loose, toilet bowl loose, one burner on oven was not working, small hole in hardwood in corner of floor behind fridge, bath tub drainage issue (slow clog, just needs to be snaked) water stain on ceiling with cracking plaster on ceiling. 

What we did: We got the letter on Friday afternoon and everything was fixed by Tuesday night. Replaced the stove with a new one, fixed the toilet issues, re sheet-rocked the entire walk-in closet ceiling (and painted), patched small hole in floor, tightened door hinges, and had plumber come in and instead of snaking, had him replace the pipe that was getting clogged. 

Questions: 

1. Tenant has been consistently late on rent. Still has not paid May rent (and now says she was advised not to pay rent until everything was fixed, even though she was late before board of health even did inspection). June rent is due the 6th, but she said she won't have May rent until June 10th. We want to evict based on this, but worried about the 6 month rule after board of health inspection (in Massachusetts) that may be considered retaliation unless we can prove we would be evicting even if we didn't receive notice. If she has not paid May and June by June 6th, does this give us enough grounds to prove we are evicting based on late rent and not "retaliation"?

2. They were out of a shower/tub for approx 2 days, even though they are giving us a hard time, would it be smart to give them a $50 credit on rent (yes the late rent) for the "inconvenience"? 

3. They have kids, predicting they will be late for June as well. Will eviction be harder since they have 4 kids? Is there any type of trouble I could get in for them living in a 2 BR with 4 kids?

There is a lot going on here, I do have a lawyer, just trying to get feedback from people who may have been in a situation like this before. (problem tenant with board of health inspection in place and wanting to evict based on 2 months late rent)