All Forum Posts by: Eric Thomson

@Dave Foster thanks for the info. I’ll look into pub 523. Clarification on option 2, are you saying we could subdivide and sell excess land after 2 years avoiding capital gains but then would have to wait additional 2 years to sell the home?

Considering multiple scenarios. Either sell all three over time (house/lot, extra lot 1, extra lot 2), sell home and 1 lot, keep third lot to build, or sell all 3.

Hello all!

I have a tax question regarding the Section 121 2 year capital gains exclusion for primary residence...

The property in question is originally 3 subdivision lots. Wanting to re-divide the property and sell off the additional lots after 2 years. Will this still fall under section 121? I’m reading elsewhere that regular income tax would apply, but unclear if that takes into account the property being a primary residence.

@Matt McGuire Just realized I’m going to be out of town on the 20th. Definitely be there in March though.

@Dwight Porter using the calculator, assuming 50% rule (which is probably too conservative for a new property) you'll be paying $150 per month for your living expenses. After a year move out and stick another tenant in for $2500/month, if that's truly the going rate) and that's incredible cash flow for a 100% LTV deal. Then you can apply the rest of your VA to the next property.

@Julio R Gonzalez, yeah I’ve run into the same problems with our market. Thanks @Clifton Barker for the advice.

@Robert Sadler we had a good time. Looking forward to the next one.

@Cody L. Ouch! Well on your next trip to Del Lago stop by our meetup. Careful passing the many inner loop tent cities after 9pm though.

@Cody L. You can’t go inside the loop after dark. Nobody’s looking to get stabbed over a meetup. 

@Engelbert Devera As a Realtor I learned pretty quickly to stop giving any verbal acceptance of offers because of this sort of situation (which happens more than you’d think). I would not pull your offer, that makes no sense. That’s cutting off your nose to spite your face. This is a business, don’t let your emotions get the best of you (easier said than done). I’d suggest finalizing your signed, accepted counter offer and submit it. If they were lying then you’ll get the property for the price you agreed. If they weren’t lying, well you’re no worse off than if you pull you offer.

@Bernie Liu I will reach out to you privately to see if I may be able to assist.