All Forum Posts by: Drew M.

Just about every tax sale I have ever seen has included major disclaimers that buyers must do their own due diligence to understand what they are buying, "caveat emptor" and all that.  AFAIK not being able to immediately obtain title insurance is pretty much the norm for tax sales, at least in states where there is a post-sale right of redemption or some other way to void the sale.

@Account Closed is probably right--the only way you will obtain title insurance is to wait for the statutes of limitation to expire or to retain an attorney for a quiet title action.  Another thought is to seek private equity or private lending.  Chalk it up to a learning experience.

Are you saying you were the buyer and were seeking a commission as a sort of rebate off the purchase price?  If so, what did the written agreement say?

How?

Well your odds will go up substantially if you've got a written contract that says you were to be paid a commission, but then again I'm not sure I understand the facts.

woops sorry to necro the thread, didn't realize it was old...

Well considering the recordation happened 15 years ago I would expect that there is a statute of limitations argument as well.  As we pompous lawyers like to say, equity favors the vigilant, not those who sleep on their rights.

Personally I would consult with a New York lawyer.  On the other hand, having a first position lien on what sounds like a historically performing mortgage vs. second position doesn't seem like it is super beneficial--you have been getting the benefit of the bargain you struck back then.  If they make an offer and you like it, I don't think you should have any regrets about taking it.

@Ned Carey I'm surprised that someone redeemed such a low dollar lien--usually if the property tax is that low it's some sort of unusable leftover strip of land.  Can't imagine why anyone would want to maintain ownership and pay property taxes on such a parcel.

looks to me like you get 27 cents in interest. Congrats?

obviously there is a large bias around here toward financial matters.  Contrary to some of the comments I don't think it makes any sense to try to evaluate the guy's earning capacity. You know he's not going to pass.  A screening for criminal record, prior evictions, etc is a different story. That will help you evaluate the level of risk you would be taking on if you decide to let him move in. 

I agree with @Bill F. that you should focus on deciding how to minimize the risk that the guy becomes a thorn in your side, at least to the point that you are comfortable with the level of risk. 

Considering that the tax filing deadline is in a couple days, my personal opinion is that you should pay the amount you believe you owe and then take an automatic extension. Then hire a good tax professional to see what your options are. While you can treat a nondeductible IRA contribution as the basis in your IRA, I'm not aware of any such option for a qualified plan (401k). You may have wiped out your basis when rolling over from an IRA to a 401k. There are special rules applicable to certain types of retirement accounts where successive transactions within a short period of time can be deemed a single transaction. Here is some IRS literature. Good luck.

https://www.irs.gov/pub/irs-tege/rollover_chart.pd...

https://www.irs.gov/publications/p575/ar02.html#en...

Hazard insurance typically covers the replacement value of the structure only. Your purchase price includes not just the improvements but also the land, which is not really subject to the same risks as improvements (like fires).  The insurance companies have algorithms that calculate how much of your property value is due to improvements and they issue policies accordingly. 

No offense but that seems silly.  The tax burden would just be passed on to you if they put you on the payroll. There's no such thing as a free lunch, somebody will need to pay the tax man eventually.

You describe the issue as one of preserving wealth for future generations. That is not the primary purpose of saving money in a tax deferred retirement account. It's a tax advantaged way for the government to encourage citizens to save for their own post-retirement support.  It sounds more like your parents problem was a failure to plan for the payment of income taxes on their RMDs. 

I have a relative who is a certified financial planner. He always says that owing taxes is a good problem to have, because it means you are making money.  While your parents should certainly take advantage of all the deductions they can, the ship has more or less sailed on 2016 personal income taxes.  Perhaps for the rest of this year they will want to calculate their tax burden regularly and make sure they are setting aside enough to cover their taxes. I hav no idea if there are retirement account custodians out there who will do tax withholding from RMDs but maybe you could try to find one.