All Forum Posts by: Eddie L.

$140k/$175k of cap gain at 20% so $28k/$35k (ignoring depreciation recapture just to keep it simple) of taxes to Uncle Sam. Very generous. Which is fine as long as it works for you.

1 Vote

Is there a specific church per se? Perhaps start going to church to convince some members to partner up with you and group convince him to join your real estate journey.

0 Votes

@Chris Williams

Sounds like you sold 50% of the property to him so tax gain would be what's received minus what you gave up being 50% of your adjusted basis in the property. Afterwards you both contribute your 50% share of the duplex into the Partnership except his has a basis of what he paid for it while your basis is based on what is currently is. This does get tricky/sloppy...hmm...

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Green Bay, Wisconsin

@Brock Wahl

Two years ago if you sold the house you would have tax free gain of $90/$100k. How much would it be if you sold today? If you past the three year mark then no more Sec 121 exclusion.

1 Vote

Quote from @Andrew B.:

Quote from @Eddie L.:

Quote from @Peter Mckernan:

@Dave Klein I had a friend/client that I listed a home for a few years ago that the tenants were given 60 day notice to move out, free rent for that 60 days (the owner was in a good financial position to do so), and when the tenants left they took the dryer/washer/stove.

I filed a police report and the police said they can file it but doubt anything was going to come up it cause how could we prove that it was actually the tenants.

How could we prove the tenants stole the dryer, washer, and stove? I have no experience so really sad if this is the common logic applied. The same logic seems to apply to anything done by tenants to the unit then... if they trashed the place not like landlord can have indoor cameras to see it happening

Police cant do anything because there is a higher burden of proof to convict someone of a criminal act. You have to be able to prove that a crime took place.

Civil lawsuits have a lower burden of proof. You merely need to prove they were responsible for the appliance when it disappeared.

If tenants trash the unit, you can sue them in civil court but would not likely pursue criminal charges for destruction of property.

Oh sure that definitely makes sense. I assume from the civil perspective it's just a matter of showing the condition of the unit when tenant moved in which would also show the dryer in place and now show the condition after tenant left to show how much damage/missing appliances.

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Quote from @Peter Mckernan:

I filed a police report and the police said they can file it but doubt anything was going to come up it cause how could we prove that it was actually the tenants.

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To be clear though all these benefits apply to single family homes as well but just on a smaller scale right?

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Dallas, Texas

When did this STR start? I'm assuming you're concerned about the 2021 tax year obligations. Probably better to submit estimated tax payments at this point and request a 6 month extension to file the actual tax returns.

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Why would a bonus of ~$50k have ~$23k of taxes withheld? That's close to 50%?

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Quote from @Jon Fletcher:

UPDATE: My CPA is telling me that the Investment Credit / Rehabilitation Tax Credit / Historic Tax Credit is a business credit and therefore it does not apply to my overall personal income, inclusive of W2 income. She says that it only applies to income specifically pertaining to business. Is this correct?! If the credit is applying to my personal tax return, I would think that it applies to the entirety of my income. Has anyone else encountered this?

Can your CPA provide some references? My understanding is that general business credits, including the rehabilitation credits, should be available to be claimed by individuals with certain limitations to offset their income tax liability on Form 1040.

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All Forum Posts by: Eddie L.

Eddie L. has started 2 posts and replied 140 times.

Post: buying property vs renting existing primary - tax differences

Post: How can I convince my uncle to be my partner?

Post: Letting partner buy into rental

Post: buying property vs renting existing primary - tax differences

Post: Dryer stolen from apartment building

Post: Dryer stolen from apartment building

Post: Tax Advantages of Multifamily Real Estate

Post: Legal Tax advice needed ASAP!

Post: Tax/Entity question with W2 job

Post: Tax credit for historic building