All Forum Posts by: Cal C.

Just curious if any BP members are from NW Arkansas. Thanks!

just putting this back to the top

@Yuriy Tymoshenko

I've gone through an audit (they ultimately agreed with me) and you don't want to go there, but in another case with the IRS, I was able to give them a few documents and I was done. Funnily enough they were after a lot less in the audit than when I was able to provide the documents.

Bottomline- you may be able to get out of this by providing a few documents. However, if not just pay it and move on. Consider it a cost of doing business.

@Steve Babiak

Thanks Steve. You are absolutely correct. My answer should have addressed the entire picture. Cap gains will be due even if you wait a year on the gains (or losses) in the new property and in the original property. However, since the OP had rental property he would probably (not a certainty) be able to avoid a lot of the business types taxes, i.e. Fica, since he has had rental property before and if he holds it for a year while renting it or attempting to rent it.

OP was looking for tax avoidance and I gave a tax mitigation answer without fully explaining it.

@John McClain

You could always rent it out for a year and then sell it. That doesn't guarantee that you won't still be seen as a flipper especially if you are flipping other properties, but it drastically improves your odds.

Jon,

Short answer: I diversify in other properties and in other types of investments. Besides using opm gives me asset protection. I'll try to give a more detailed answer tomorrow.

I'd much rather tie someone else's money up for 5-30 years!

@Don Chambers ,

read my thread lesson learned in court, lots of good info there also look at the GA landlord tenant handbook.

http://www.biggerpockets.com/forums/52/topics/117209

@Joe Haas

I apologize for the inside joke. I was busting on J the other day about the MD weather and he responded that snowmen were an advantage of moving up there.

I strongly suggest you look at 123flip.com. Even if you are not flipping he has some great ideas the rehab process, buying, inspecting, and rehabbing (although you won't spend as much money) are all similar whether flipping or buying and holding.