All Forum Posts by: Tami R.

I went to a local bank, got a commercial loan for a "Cheap" house + improvement loans total $20k interest 7.34% fixed - 15 years.

I like the picture tool on the main page but I never see before and after pixs - am I missing something... I love looking at the before/after pictures - is there another page on this site that has that?

Re: Head of Household. We are not married so we have never run into this obstacle.

Thank you so much Christian!
Correct Dan is not included in any of the paperwork - even though we are in this together, I am the one that has been approved for X amount for commercial loans.
Do you think Dan should even include his company in the mix or would it be better not to? Like everyone, I want to make a profit and make it a win win for all of us. So if it would beneficial not to include the construction company then I won't but if it's a win-win for both me/taxes and Dan's co. then we will use his company in the mix - write checks to his company for material, labor, etc... and then show that he's not hardly making anything so he would basically pay taxes on his labor (not subcontractors) and his profit (which would be very little)... by doing it this way then I would have more expense...

So we are ready to get our first house and we have a schedule to have it completed in 8-10 weeks and on the market right after that. We have talked to our realtor we have a plan, everything laid out but I keep getting more and more confused on the tax side of everything.
I have mentioned this before (and I know I need a new CPA - working on it!!!). I am in the 31% tax bracket and my boyfriend Dan is in the 36% for his business/himself. I want a CPA on my "dream team" that will tell me what to do to benefit us all.
We are going to do majority of the work 80% the rest will get done by Dan's subcontractors (plumbing, electrical, roof). Should I have Dan's company bill me for the work or should I just pay for the merchandise and the subcontractors? What would be the best way to get this so we all benefit.
We got the house for $12k
We will put an acutal $13k into it (unless we have the co. bill us then we can make it look like it's more)
We will list the house for $42k and it will most likely sell for $39k or $40k.

I know there's a lot of "IF'S" and .... but can someone give me a little insight on some suggestions.

Dan and I are not married we have twin boys and have lived together for 5 years. Marriage is in the future but not for another 3 years or so, the houses will always be under my name and not his.

Our first little property will officially be our next Monday... yikes! It was a foreclosure, the guy that owned it was involved in drugs and went to prison. They wanted 20k and we got it for 12k. The town population is 28,000 (biggest city - and in between Mpls and Des Moines, IA). The property has two downfalls, no garage but awesome big yard and it's on the north side - not the best side of town, but the town is not known for gangs, murders, etc... like if we were talking about a big city.
My fiance Dan owns a pretty well off construction company and our family will be doing the work except for the roof and a couple other bigger projects - he will have his guys do. We are going to have all expense run through my account and for tax reasons we are not paying Young Construction cause that means he would have to pay in to the government for his employees, etc...
We will put $13k (if we had to pay contractors, etc. to do the work it would be about $25k in work) into the house and list it for $42,500 - our Real Estate Agent said it will sell easily for $39k or $40k.
I think it's a good first time investment.... It seems like houses sell good in my market between $35k-$55k.

It was my mistake I am at the 25% tax bracket.

I think it would be better for me to do it myself and if he employee's helps "me" out on the side I pay them with a check. This would make it so Dan doesn't have to pay taxes on them and unemployment which is 8% of their wages... does that make sense?

We are not married right now and my tax bracket is at 15% so that would be the same as capital gains.

Hi Ken,
Thanks for your words of wisdom. I will check out the website you mentioned. West DM is great - I am pretty familiar with the DM area, I have a lot of friends in the radio business down there (Clear Channel).
I am in the Mason City area.