All Forum Posts by: Bill Walston

No Sarah, it is not true. Capital gain is determined by sales (disposition) price and basis, not the amount owed. I do find it interesting that you would take the advice of a local flipper over that of the CPA seller regarding the capital gain on the seller's property.

I agree with Steven...and the best part of Jon's post was summed up with "Walk Away." :)

Spot on Bill..I was speaking mainly as to the assignment of a contract. In the case of an SLO I think you should definitely close with the seller before attempting a close with your tenant/buyer. This IS a case where you "can't sell what you don't own." If you don't have your own cash available transactional funding can be used.

And we should take your word for this, why? Did you buy a course and not get a refund? Why do you say he sells "everybody's work and claims it is his?" Has this been your personal experience with him, or just what you've heard? Just wondering...

CA Business and Professions Code Sections 10130 and 10131 absolutely DO NOT prohibit you from assigning contracts (or doing a SLO)...

Code Section 10130 says that it is unlawful to act as a broker without a license...

Section 10131 sets out the functions of a broker...

Neither code section mentions the word 'assignment,' nor does it describe the action of assigning a contract.

It is absolutely legal for you to assign your rights to any contract TO WHICH YOU ARE A PARTY unless that contract specifically prohibits assignment. The key is that you must be a party to a contract. Accordingly, if you have a Purchase and Sale Agreement you can assign that contract to a third party. Note that you are NOT selling a property that you do not own. You are simply assigning your rights in a contract. The same is true of a Lease Agreement or an Option to Purchase.

You need to make sure that your attorneys are real estate attorneys and have experience working with investors. If yours don't, I would suggest finding a new attorney.

It's true that the "balance" - meaning the NOI or NOL - will pass through to your personal tax return Ken, but the net result is the same. The NOI will be taxable and the NOL will be subject to the $25K limitation and the phase out.

There are, of course, other reasons to choose an LLC for holding your property.

Michael Lerch, I'm in agreement with K. Marie Poe on this one. It doesn't matter that your seller says you had plenty of time to get an inspection done. Your "cheap crap contract" says that you have until "transfer of title" to inspect and approve the property. Your seller agreed to this time frame when he signed your contract. In most states an email is considered to fulfill the "in writing" requirement for cancellation of a contract.

Travel expenses related to the management of income-producing property are certainly deductible. Be sure to keep the necessary records in order to support your deduction.

Excellent Michael...thanks for sharing.

Anthony Halstead

Tony...you simply are NOT going to be able to write off the cost of purchasing a non-depreciable asset. The cost will be recovered should you sell the asset in the future. If the amount of the tax deduction is more important to you than the ownership of the asset, then by all means - rent. That is a financial decision that you must make for yourself.