All Forum Posts by: Jessica Singh

Connect with  @Nicholas Aiola, for anything related to tax and real-estate. He is a CPA who has been helping BP members with a thread going on for the last two years and counting!  https://www.biggerpockets.com/forums/51-tax-legal-issues-contracts-self-directed-ira/topics/517982-ask-me-a-cpa-anything-about-taxes-relating-to-real-estate?page=60#p5078233 

Thank you @Nicholas Aiola. Thanks for re-confirming that it is allowed. My question: is it OK for us to think*(and rejoice with our plan)  that she is buying a 730K property for $630K (coz if she just took capital gains, she would have paid $100K in capital gains tax). Or this is not the way you as a CPA will say to look at it :) 

God bless you @Nicholas Aiola! I have just binged read almost all of the 59 pages of this thread! I think I am ready to give the CPA exam :)  Thank you for your generosity! I am trying to help a friend. She never thought she could afford a 730K home until now! 

Doing a 1031 exchange (400K cash +100K loan), buying ($730K) SFH - renting for a few years, and then move into it.

Is my understanding correct that she should go ahead by buying the exchange property (with 400K downpayment, $310 loan) as SFH in her ideal neighborhood coz even though for years it is a renal as $100/month negative (in addition she will need to pay any upkeep, maintenance charges or if anything breaks in the house or take a loss if the home doesn't rent for a few months) but once she moves into it (after 2-3 yrs, as allowed by law), she will be paying $500/month less in rent than what she is paying now living in a rental property herself?

Her current rent: $3000/month

Mortage+property tax+insurance of exchange property will be = $2500/month. (she can get $2400/month rent)

Question) Am I suggesting her right that to think that she is buying a 730K property for $630K so it is OK to splurge and go for it. She understands that if anything breaks in the exchange property, she will need to cover it as any home-owner would. She has money saved to take care of that. 

@Dave Foster. Thank you! Some ray of hope here! Their joint return is NOT the tax payer.  They have not filed their 2019 taxes (took extension) but took extension separately. Wife as HOH (dependent son), Husband as single. 

Though they were legally married in 2019 and still are in 2020, they were living separately since early 2019 and maintaining separate homes which allows them to file as single. 

This means if they get their title changed to: tenacy in common, that should work under the circumstances they are in. agree?

"If you are legally married, you can still be considered unmarried in the eyes of the IRS if you didn't live with your spouse for the last half of the year, you file separate returns and you live with your child, including a stepchild or foster child, who you can claim as a dependent.

@Dave Foster

Thank you @Daniel Dietz!  The signing off half his equity is a good idea but not practical in their situation. 

Yes, CA is a community property state but isn't this what Feds care about: The 1099S that Escrow files with the IRS needs to match the 8824 that we file when filing our taxes. Escrow mentioned that they can create two separate 1099S for each one of us, stating that 50% of proceeds went to each person.  As long as the names and SS# on those forms two forms (1099S and 8824) are the same, should it matter whether the Title is joint? 

Asking for a friend.

Rental property bought as husband-wife. Title: held together as a married couple. Now going through a divorce, wife wishes to do 1031 on her share (50-50). Since IRS rule is that tax id of property sold needs to match the tax id of property exchanged. How can she buy a property in her own names separately, after selling their rental home (owned jointly). Looks like husband may not do 1031 (will pay capital gains on his share)

Their divorce hopefully will finalize before the end of 2020, & they will be paying taxes separately for 2020. 

Q: Can 1031 be done by one person in this situation? If yes, how can the current title be changed to ensure this 1031 does not gets revoked in the future. 

property is held in a community state - CA.

Thank you @Dave Foster. This information certainly helps. 

Hi guys, Just wanted to say hello. I've come here to learn about BRRR, passive investing, active investing, and all things real estate. A life event happened where I need to take care of few things urgently and I don't have the luxury of time to learn for now. I will be visiting on and off and hoping to learn and help others as I go on this journey.

I want to save ~80K capital gains but not knowledgeable about investing thus seeking help/advice. PlanA: I am thinking of buying a home where I rent and move into it after 2 years. The only problem is where I live homes are 700K, and my 1031 fund is 500K. I will be cash flow negative ($100/month) for the 2 years that I will be renting. Not sure if I need to find investments that give 15% interest (for now and figure out another 1031 when life is little settled).  Ideally, I wish to park funds for 2-3 years before I want to think about plan A again. Or I should be implementing plan A now. Any ideas appreciated.