All Forum Posts by: Daniel Klucas

Looking for recommendations for a local lender to fund a small 6 unit apartment deal ($600K).  

Thanks in advance, 

Thanks everyone, I'll look into these suggestion.

Any recommendation on an affordable (or free) floor plan design software or website.  User friendly as possible!

Whats everyone else out there using? 

Thanks for everyone's input!  We are reviewing our possible options and will be reaching out accordingly,

Any recommendation on a REI friendly CPA in Atlanta area?

We're looking for help for the best tax strategies and setting up entities for rentals, flips, commissions, etc...

Recently got laid off of my "full time" job and I just started the GA sales pre-license course. I plan on starting my sales career using an LLC. We also need to form the best suited entity set up for flipping as we currently have two properties in the process.

Looks like we are safe....I think.  From what I'm reading now section 121 will remain at 2/5 and not move to 5/8.  Hopefully, for all of us, this stays true and this tax reform is signed into law this way.

Yep I’m in the perf ct s#%! storm. Maybe there will be a phasing in period or some sort of exclusions provisions. 

 I was hoping to avoid having to “sell”  right now, but it looks like I may have to rush this process before the end of the year. 

I may follow Clint Coons teaching here. https://youtu.be/MWFzAE7wu3k

Just got to figure out how to handle the mortgage part which was refinanced in October as part of the subdivision and separation process. 

We are in an odd position if this tax reform to the capital gains for primary residence gets passed as planned.

We've owned our primary residence since October 2014. Since we had over an acre of land we had it surveyed and subdivided.

The first of November (2017) we sold off the three subdivided lot from our primary residence to a developer/builder. We were planning to on selling our house our after the new construction was complete to maximize our profits.

Under current law both the sell of the land and the sell of the home would qualify together for the $250/500K Capital Gains Exemption for Primary Residence Sells.

Now due to the Trump tax reform change from the current 2 out of 5 years requirement to the revised 5 out of 8 year for this exemption, next year we will stuck between these two requirement since half of the transactions will have taken place prior to these reforms being passed and the other half after...............

I have read no where of any kind of provision for grandfathering in any exemptions.

Not sure how to handle this one but we don't want to get stuck paying taxes on the 150K profit we made.

Any advise is much appreciated.

Per IRS Publication 523 (page 5)

"Vacant Land Next to Home If you have vacant land adjacent to the land on which your home sits, you can only claim the sale of that land as part of a sale of your home if ALL of the following are true. You owned and used the vacant land as part of your home. The sale of the vacant land and the sale of your home happened within 2 years of each other. Both sales either meet the eligibility test or qualify for partial tax benefits as described earlier. If your sale of vacant land meets all these requirements, you must treat that sale and the sale of your home as a single transaction for tax purposes."

We are in an odd position if this tax reform to the capital gains for primary residence gets passed as planned.  

We've owned our primary residence since October 2014.  Since we had over an acre of land we had it surveyed and subdivided.    

The first of November (2017) we sold off the three subdivided lot from our primary residence to a developer/builder.  We were planning to on selling our house our after the new construction was complete to maximize our profits.

Under current law both the sell of the land and the sell of the home would qualify together for the $250/500K Capital Gains Exemption for Primary Residence Sells.

Now due to the Trump tax reform change from the current 2 out of 5 years requirement to the revised 5 out of 8 year for this exemption, next year we will stuck between these two requirement since half of the transactions will have taken place prior to these reforms being passed and the other half after...............

I have read no where of any kind of provision for grandfathering in any exemptions.

Not sure how to handle this one but we don't want to get stuck paying taxes on the 150K profit we made.

Any advise is much appreciated.

Per IRS Publication 523 (page 5)

"Vacant Land Next to Home If you have vacant land adjacent to the land on which your home sits, you can only claim the sale of that land as part of a sale of your home if ALL of the following are true. You owned and used the vacant land as part of your home. The sale of the vacant land and the sale of your home happened within 2 years of each other. Both sales either meet the eligibility test or qualify for partial tax benefits as described earlier. If your sale of vacant land meets all these requirements, you must treat that sale and the sale of your home as a single transaction for tax purposes."

Sam, I agree, just hope to be able to write off my golf cart before moving in.