All Forum Posts by: Colin Williams

@Dave Foster thank you. I'm basically working something out with a relative very similar to this situation. I'm trying to get as much information before I speak with my CPA so I'm not wasting his time and getting billed all at the same time. I appreciate the info.

Thank you sir, now let's say that the $650k down payment is being used through a 1031 Tax Exchange from a sale of another property that sold for $1,350,000. Would the purchase of the next property, technically for $1,360,000, even though  almost half of it is being financed through the seller, would that still work in protecting the that $650k from capital gains? 

In this example, I'm wondering how Capital Gains affects the seller. 

Let's say I sell a duplex for $1,360,000. The buyer pays $650,000 down and I finance the difference to the buyer. Will I be hit with gains against the $1,360,000 sale price even though I've only been paid $650k and the buyer is paying the rest off over time to me? 

I understand there are other factors and exemptions to consider, I'm just giving a basic example. 

I have a question about long term capital gains.

My original basis in my primary residence was $230k. I refinanced at $600k with cash out. Is my basis still $230k or does it increase to the $600k?

I'm trying to figure out numbers for possibly selling my home because of the market here, and the difference in taxes is either going to be zero or $102k depending on what my basis is.

@Brooks Hunt Who is "they" in this situation? The winning bidder or the bank?

I read on another post someone suggesting using Ally Bank fire their accounts for each pretty because they offer "buckets" within each account to keep track of funds.

I was wondering if there is a particular financial institution that people prefer and why? Do you open a new account for each property? Or do you group some together within an LLC and separate everything in spread sheets? Do you use one bank or credit union for all of your accounts?

@Cody Smith I'm going through something similar, trying to figure out what level of protection I need that is. Not dealing with a pompous ***. I was able to find a CPA/Attorney through the Bigger Pockets networking tab. Very helpful. Also, if you listen to the podcast, episodes 49 and 109 were very informative.

@Chase Yokoyama just curious, what kind of laws we're just passed?

@Brian Gerlach how many vacation rentals do you currently have if you don't mind my asking? Are you in an area with year round traffic? I live in summer vacation spot, so places here are turned into seasonal. Summer weekly at a high rate and then people rent the same house for the entire winter at a regular market rate.

I am not very good at approaching people for help or information. I find it difficult to put myself out there and tell people what I'm doing in my life, or what my plans are for the future. I just feel awkward about it.

With that being said, I do the plumbing for a customer that made his wealth in real estate. His current net worth is somewhere around a Billion dollars. He was a developer in the past and now owns most of downtown Nantucket and a few of the larger hotels on the island.

I see him a few times every summer when he is here and I'm wondering how I could go about approaching him and asking for advice. What kinds of questions should I be asking? My problem is I don't know what I don't know, so how do I ask the correct questions?