All Forum Posts by: Deanne Bourne

CALIFORNIA ONLY

I did sign and circulate the Repeal the Death Tax Petition.  They need every signature ASAP like IMMEDIATELY.  I hope we got the number of signatures to get it on the ballot 

I looked for advice on this subject about 3 months ago then I had to just jump in and do it. Our San Francisco Bay Area market has become very difficult to find a property. The traditional forward 1031 path of "sell your house and buy another in 180 days" just would not be anything less than completely nerve wrecking. We made offers on 7 houses but could not win the offer. Properties were going at $500k over asking or about 25%. A Reverse 1031 just made sense: qualify for a loan (hard money), find a property, close on it then sell the exchange property and give everything to the Intermediary to sort it out according to the IRS guidelines. There is a great deal to a reverse exchange. You absolutely need a seasoned Intermediary. We talked to several. You get a sense for who is the most knowledgeable when you start asking question like "who is on title for the ownership of the newly purchased property, who signs the loan docs? Who is on the liability insurance and who signs those documents?" Finding a willing lender was also difficult bc they must loan to an LLC . I feel like I can answer some questions on this subject.

Thank you Cody. 

Has BiggerPockets created a book or a podcast to help people decide if they would be a successful landlord?  There is a type I suppose that is more successful in general.   There are a lot of questions on my landlord association page that lead me to believe that some people need an idea of what works and what does not work in general.  If you are not making headway as a landlord and you think you might not be cut out for it, what do you do?  How can you continue investing?  Hire a manager? Is there another choice? 

Regardless of your political leanings,  the 1031 Exchange is a great investment tool.  This administration needs cashflow and they plan on some changes that would eliminate or curtail YOUR profit.  If you are just starting out in investing you need to act so that this tool is not removed from your future plans.  Briefly, this IRS tax law allows you to use the $ from house (investment)  'A' to pay for house (investment)  'B' and to delay the tax payment on the capital gains from selling A.  That delayed tax money helps you buy a bigger, more expensive investment now and pay the taxes in a future sale.  You can trade again in 2 years and keep the tax deferred.  

The President has proposed limiting 1031 Exchange tax deferral to a maximum of $500K. The administration says the drastic change is part of the plan to “pay for” the cost of the $1.8 trillion American Families Plan.

This is a direct threat to Section 1031 Exchanges and the proposed limitation will have a severe negative impact on investment real estate and the economy.

You can help. Tell Congress to keep 1031 Exchanges.

SORRY  THE SPELLING OF KHAN ACADEMY  WAS WRONG   IT IS     K  H  A  N  .....

This is 2021 and Kahn Academy on YouTube is the best.  It has short, well illustrated banking and business information.  I looked up the "central bank" and found many clips that were helpful.  

Thanks Scott and I know about Kahn Academy on YouTube which is excellent but I am looking for a short book on business subjects aimed at teens. 

I just learned about how the banking system moves money to and from the central (Federal Reserve) bank. (Which is not a related to the federal government at all).   Is there a teenage level book that would teach this and beginning business principles to a teen?

When you give away all or part of your property to children during your lifetime, the capital gain tax basis ( or the original cost) of the property for the giver becomes the tax basis for the recipient.  If I gave some or all of my house to my son before Prop 19 became effective he might dodge the property tax increase upon my death BUT he would inherit my tax basis for capital gains taxes when he sells after or before my death.  My house was $150k 40 years ago. If I transfer say 50% to my son while I am alive, when I die his basis for the part has a tax basis of $150k.  So the property is now worth over $1M so if I gave him half his capital gains after my demise now.  1M - 150k=. 850k   His tax obligation for capital gains is calculated on half $850k if I expired today.   The other half gets a stepped up basis so no capital gains tax. 
If I give him nothing. If I will it to him;  when I die he gets a stepped up basis if he sells before it appreciates during his ownership.  If it appreciates starting the day after I die he pays capital gains on that appreciation..  The huge equity I have made it a poor decision to share title now .