All Forum Posts by: Jonathan V.

JV

Any type of sale where you are creating a note in return for anything.

Whether it be a car, home, pickle, or the rights to something. If you are financing the sale, you have to claim the gain in that year.

It may vary state to state however. But I doubt that it will affect your federal taxes. (i.e. you may not have to claim it on your state, but on your federal you will)

This is all from my research as an investor, not from being a CPA. I've not came across this issue before as I've only dealt with more "traditional" investment types in the past. (i.e. straight renting or straight selling)

From my limited knowledge in the area, the IRS wants you to do it in one of two ways:

Treat it like rent

or

Treat it like a sale

If you are not on the title, it's a sale. If you are, it's rent. (In my book)

John Hyre slates an aggressive tax stance for RE investors, I'm not sure of what he is doing in it, but may want to take a look at it.

http://www.realestatetaxlaw.com/

Marc is correct, if you are selling the home on terms, you have to recognize the capital gain in the year of the sale.

I'm not familiar with Lease-Options, but I'm pretty sure you can treat that as rent income, until the property is sold that is. That would have added benefits such as depreciation and upkeep deductions.

Coming from a CPA's perspective, you may save yourself a couple of bucks if you use Quickbooks or Peachtree instead of Quicken... Quicken "can" be a pain at tax time.

I've used MAS 90 before as well, it's OK, but QB and Peachtree are a bit better imho.

I agree with Marc, not getting insurance is a huge gamble, as well as not requiring it.

Sorry I didn't reply, I haven't frequented this forum too often as of late. I'm a CPA and tax season is in full gear.

What I learned is that, yes you need to require the mobile home owner to pay for the insurance. My agent says that he can write up policies for:

When I've purchased a home and it's vacant.

When I've sold the home so that the buyer can easily get the insurance.

Hope this helps out. I think he said it'd be about 50-60$ a month. Also he said in the beginning I'd probably have to pay a full year's premium in advance, but it'd be refunded to me after the mobile sold and the new owner got a policy.

I found the answer I was looking for in another forum, any thoughts would be appreciated but I feel that I've found my own answer.

A couple friends and I are going to be purchasing a MH soon in the form of a Lonnie Deal. I know almost everything about the deal other than getting out there and doing it ;-) (So I've probably got about 40% of the info down lol)

Anyways, we will have liability insurance on the LLC, but what about the mobile homes? Do we require the buyer to pay for it?

I have a friend who is an insurance agent and he could probably structure the deal up so that I could just have it with me at closing and work it into the note that if they don't have insurance then they lose the home.

Any advice is appreciated, thanks.