All Forum Posts by: Daniel Hart

I don't normally seem to make money, so I don't have this unusual problem :)

I am expecting a gain of about $50k this year from a flip deal. I have 15 rentals and I will probably depreciate them all, and take any other normal deductions, but I'm looking for some creative ways to lessen the gain.

Some ideas that come to mind are (not sure if all possible).. Buy a business vehicle, buy a seller financed house with an inflated sales price for depreciation, do all my deferred maintenance this year, donate to a non profit that I control, bury my profits in the ground and run from the IRS.... :)

Thanks guys I appreciate your input!

The 47k that I am selling it for is the principal balance plus back payments that the LLC should have gotten in the first place.

Question though, is it prohibited to make an ira loan on a property that you personally have a loan/lien on? I figured if you have ownership its prohibited, but if you dont its ok, perhaps im wrong?

Thanks Jon, I'll have to re read this a few times.

You may be right, but to play devils advocate, its easy to say to simply get a new accountant. She says she has proof from audits, and that anyone can write off what they want, but when you get audited its another story...

I lent $30,000 from my LLC on a property. I then later lent $15000 in 2nd position from my IRA on the same property. I had to foreclose, and choose to foreclose with the LLC. The 30k plus back payments added up to $47k, so i foreclosed at that amount and no one bid, so I got the deed. Now I am selling the property for a net of $47k. What is my basis in the property, is it the 30k i lent, or is it the 47k i took it back for at auction?

Also, technically the LLC mortgage wipes on the IRA 2nd, BUT, can i take some of my proceeds on the HUD and state that I need to satisfy a lien for say.. 17k, and send it back to my IRA to avoid having a gain in the LLC?

Has anyone been audited and was OK with this deduction?

My accountant says that if I took a property subject-to with a $500 interest only payment, and a $500 rent, that I'd have to pay tax on all that $500 rent and would not be able to take the interest as a write off. That doens't make sense to me. She disagrees with me and says she has proof from past audits.

I need access to summary ejectment/unlawful detainer records that are available in westlaw through a subscription service that is in addition to standard westlaw access. It's always challenging to find this. If someone can provide the data I'd be glad to compensate them every time I need it, usually every couple of months.

Tim, would this be the same as setting up "jobs"? That's how someone described it to me. I was told that Quickbooks 2012 for MAC may not support jobs, does anyone know if that is true? I bought the software but I haven't the slightest idea how to check this.

I have a number of rentals held in an LLC, and an S-Corp for flipping and general expenses. A friend told me to set up "jobs" for each house. I am going to hire someone to set it up, but I wanted to get a consensus of the best way to do this.

I am a completely tax/accounting/quickbooks novice, so pretend you are explaining this to your 90 year old grandmother. :)