All Forum Posts by: Greg Junge

Hi Nicholas Aiola, first off I think it's very cool of you to answer any and all tax questions for this forum.  Second, I have a question for you.

I'm trying to figure out the following scenario but need your help. A relative of mine wants to invest 100k in real estate, only if it will show as a loss on his taxes. He's not a real estate investor but has cash to invest, wants to make money with cashflow but show a tax loss. He doesn't want to be on the loan, which I'm fine being on the loan solo.

My question is, how do I know or calculate if a property will produce a loss on his taxes based on him just putting in money, not being on the loan, and being a 50-50 partner. Do I just calculate income - expenses - depreciation? Or am I missing something?

I have rental properties myself but never had a partner, and never one with this request to show a loss specifically. I always buy for cash flow, not appreciation, but do I have to change my thinking for this scenario?

Thanks for the response Alex.  He doesn't want to actually lose money but just show a loss for tax purposes.  I show a loss on paper on most of my rentals, but in reality make money on them due to cash flow.  Showing a loss on your taxes and cash flowing and making money is what I'm after for this relative and I just want to see how I can maximize that.

Hopefully that's clearer than my original post...

I'm trying to figure out the following scenario but need your help.  A relative of mine wants to invest 100k in real estate, only if it will show as a loss on his taxes.  He's not a real estate investor but has cash to invest.  He doesn't want to be on the loan, which I'm fine being on the loan solo.

My question is, how do I know or calculate if a property will produce a loss on his taxes based on him just putting in money, not being on the loan, and being a 50-50 partner.  Do I just calculate income - expenses - depreciation? Or am I missing something?

I have rental properties myself but never had a partner, and never one with this request to show a loss specifically.  I always buy for cash flow, not appreciation, but do I have to change my thinking for this scenario?

Any advice would be appreciated, tax or otherwise.

Thanks,
Greg Junge

Hey Marcel,

I'm an investor and full time agent here in Phoenix. I'd love to speak with you regarding multi family if you'd like some more information on the Phoenix markets.

Feel free to message me on here and we can chat more.

Thanks,

Greg Junge

West USA Realty

@Soh Tanaka and @Dave Foster, thanks for the responses and helpful information.  

Hey Edward, can I ask you a question about 1031 exchange, vesting title, etc... I posted the following in a different thread, but wanted to get your opinion, if you would.

I know asking a tax question in forums will get a lot of speculation and I am in the process of asking tax individuals, but has anyone dealt with a 1031 exchange that once completed, you moved it to a LLC that's in your name only? If so how many days, weeks, months did you wait to do so? I'm not concerned about the lender calling the loan due by moving a loan into a llc, I just want to know if the IRS requires you to wait any amount of time for title to vest in your name before sending to the llc.

After that question, the follow up would be, once I have it in the llc with me on the llc only, does the IRS require me to wait any amount of time before adding my wife to that llc, giving her 50% ownership?

I'm really just interested if the IRS has time frames for either of the above scenario's. Any advice would be helpful.

Hi BP,

I know asking a tax question in forums will get a lot of speculation and I am in the process of asking tax individuals, but has anyone dealt with a 1031 exchange that once completed, you moved it to a LLC that's in your name only? If so how many days, weeks, months did you wait to do so? I'm not concerned about the lender calling the loan due by moving a loan into a llc, I just want to know if the IRS requires you to wait any amount of time for title to vest in your name before sending to the llc.

After that question, the follow up would be, once I have it in the llc with me on the llc only, does the IRS require me to wait any amount of time before adding my wife to that llc, giving her 50% ownership?

I'm really just interested if the IRS has time frames for either of the above scenario's.  Any advice would be helpful.

Thanks, Greg

I have a local Commercial lender that I would recommend in a heartbeat.  Message me and I'll gladly share his information with you.

Hi Carol, 

I have a GC that I've used for myself and clients as well, he's fantastic.  If you want to message me on here, I'll gladly share his information with you.

Thanks, Greg

Does anyone know what the penalties/fines are if you don't pay the city rental tax and the powers that be find out?  Just curious on how that all works.