All Forum Posts by: Erik Garland

Hey Bryant, thanks for the support. HELOC on my rental property...Wells Fargo will do it, but I haven't found many others. Should I use this to leverage a property (for maybe 5 years) or does it sound like a bad idea. I usually get C properties and rehab them. Thanks

Thanks Roman...pardon the ignorance but what technically, is bed debt?  Or is that subjective...by the lender. 

And are you saying the loan is not taxable in any way, not even the interest?   I would be good with that! 

Thanks

Okay BP family. I've funded my own portfolio since inception. Please help with the tax implications. I have made my LLC personal loans from myself with reasonable interest rate, amortization, etc. I understand the LLC can deduct the interest paid, and I have to report income received personally.

"I'm lost on the capital gains issue. If my loan to equity amount is high then I can be taxed capital gains"

Is the LLC or me personally taxed? How? How do I determine if I meet that criteria? Is there a way around it?

Geez, I feel like you get shafted every which way trying to keep a business!!

Thanks!!!

One other side note...I'm going to kick myself I know..better to be informed and make the right decision than to close my eyes and cross my fingers.

Last year I took all the repairs at initial purchase, and those monies and fees I deducted on my return...THE RIGHT WAY, would be to add this to the purchase cost and this is depreciated, RIGHT?!

AFTER repairs have been made and the house is liveable, THEN any other repairs or maintenance can be deducted 100%, and improvements depreciated ! ?? 

Is that right?

I Will reduce my tax deduction, but better to start doing it right this year then get bit by the bug. 

thanks you all..I've been looking through publication 527 and it looks like everything points to cost , not value so much!! (Just like you all are saying) 

@Christopher Phillips

@James Triano

I like what you all said about keeping the documention..because should the county update their number like Christopher says then I would be stuck trying to justify my numbers.  

Hey guys/gals. Straight to the point

I purchased a foreclusure for approx 24k, it didn't need much work, maybe 2k.  The Tax value with county is 37k for building and 5k for land.  When getting cost basis for straightline depreciation, what do I do? 

-- 37k (county's building value) is 88% of 42k (county's total value).... 

Should I take 88% of my purchase price of 24k= 21k and use that for my building cost?

Or can I use the 37k as my cost basis.

Thanks a ton !!! I've not depreciated anything for about 3 years now :((

Not legal advice..but incase anyone is following this...

Looks like regarding LLC in NC.. if you are filing eviction in Small Claims court (suit less than 10k), and it is held by a magistrate then you can represent yourself...as of 2015

However ...if you or the tenant lose and appeal to District Court then the LLC would need an attorney

wow...I just did some online research to find the same...I will look specifically for NC. It talks about the LLC as the business entity, in separation from self...so representation cannot come from the person since their is a division...yet must come from licensed representation...an attorney.....

Wow...sheesh..that is not right  man!!  I really need these people out ...only 3 months into the lease and they are a nightmare.  Huge lesson learned! 

I was explaining cash for keys to my wife earlier tonight....and now that REALLY makes sense...for certain circumstances. 

not to dig up 3 week thread...but @rick bassett...must you use an attorney if your business is structured as an LLC? Could you not go and represent the LLC yourself? Unfortunately, I'm headed down this same eviction path....but due to poor tenant screening..ughh

Thanks

I have been too lenient. Tenants are very messy.  They have received a city housing violation.   I told them about it in advance (it's also left at premises by code enforcer).  They did not correct in time so I got the bill. I gave them 5 days to make the payment...which they have not done.

My lease says I allow 5 days to correct contract breaches.

Is this sufficient to now how them evicted??

I'm in NC. Thanks