All Forum Posts by: Calvin Lin

Hi, I co-own an LLC with another family member and have been filing IRS 1065 Partnership return and then distribute K-1's to individual owners. I am thinking about selling a rental property that the LLC has owned for several years and thus qualifying for long-term capital gain. The gain will be about $60K after realtor commission and expenses. Question: does this capital gain of $60K pass from the LLC to the 2 owners as individual capital gains and thus tax at the personal capital tax rate schedule (eg 0% for married filers with income of $0 to $78,750, 15% for up to $488,850, etc)? I think it does but just want to see if I am correct on this, as if this is correct I can potentially pay very little capital gain tax on it at the end, thus saving myself from having to do a 1031 exchange. If it passes to owners as ordinary business income then that's another story.

A lot of states nowadays have Meghan's Law where the whole community will be notified of a presence of a sex offender and also restrictions on where such a person may live (not within so and so distance of a school, church etc).  If this guy is convicted I wonder what happens when all the neighbors found out about it?  Something to think about (sorry to add to your worries).

I use Cary Plumbing they are very good price-wise (only charge me $35 to un-jam a disposal) and I pay easily over the phone w/ a credit card since I spend lots of time out of state.

Possibly a ploy to keep the $ out of his ex-wife's grasp?

All the replies so far are for Charlotte so let me chip in for Durham.  I got a few units in the Triangle (Raleigh-Durham-Chapel Hill) but none in the city of Durham itself, at least until May when my new townhouse completes just a mile outside of the RTP.  It should rent quickly due to the large # of compaines located in the RTP and the prices aren't as high as Cary or Apex.  I think Durham is an up and coming area due to gentrification but the school system there is not good, so take keep that in mind.  Also large areas of Duham are really C- or D areas so if that doesn't turn you off the prices are very low in those parts.  Also a new rapid tranist system is being proposed that goes through Durham so that's another plus.

I have between 5 and 10 units in a single LLC, all without debt. However here are the steps I took to minimize risk: each unit has maximum $1 million liability and then the LLC itself has a commercial umbrella liability policy of $3 million to protect other units from each unit. I pay about $800 for the umbrella policy and I sleep better at night with it.

What about someone who uses a multi-member partnership and file a 1065 and receive income on K-1 personally?  Does that qualify?

Speaking of UHaul moving cost premium, look at the bottom 5 of this list.

Thanks Steven.  I knew rate was going up this year so I locked in that rate in Nov of last year, a 8 months rate lock, it was a great decision.  

Check out the latest Uhaul rental data on which cities have the highest rental premium (meaning cost more to go one way to that location since it is in high demand).  Raleigh #1 in the country, Charlotte is #5.