All Forum Posts by: Jordan Shutts

Quote from @Jeyo Punnakottil:

@Jordan Shutts i am from texas and here in Tx the new purchase price becomes the taxable value.New

Owners can always challenge the tax value when the tax estimates come out every year.

 @Jeyo Punnakottil that's exactly what i was looking for. thank you 

Quote from @Ryan Kelly:

@Jordan Shutts great question. Texas is a non-disclosure state, which means the sales price is not public record. Each year the county creates a "tax assessed value" and that is what the property is taxed at (not market value). The goal is to keep your tax assessed value below the actual market value of the home. Homeowners will receive their tax assessment each April, and if interested, can file a tax protest by mid-May. You can check out the public tax records to see what the 2021 tax assessed value was for each property. Hope this is helpful.

 @Ryan Kelly super helpful answer. What would you recommend is the best way to accurately underwrite the property before making an offer? In other states I do millage rate x purchase price. Is there any pattern as it related to purchase price, arv and tax assessment? 

Quote from @Angie Shires:

@Jordan Shutts Taxes will be based on the current tax rate with county appraisal district. 

 Current tax rate? 

I've got the math figured out. I don't know if the purchase price becomes the new taxable value. 

I'm currently acquiring single family rental properties for clients in Texas. In my evaluation of these deals I pull the last tax bill to find the millage rate. Should I be multiplying the millage rate by the ARV, purchase price or the prior taxable value? In South Carolina the purchase price becomes the new taxable value but I know that's not the case everywhere else.

I'm looking for property management companies for sale in the southeast and midwest. Single Family or Multifamily. 

Thank you for the help! I will definitely be consulting an attorney and CPA. Im currently interning at an accounting firm and was just recently exposed to corporate and partnership tax returns. I'm starting to prepare them myself but still no expert. Now I know what I'm looking for. Thank you.

Will I be required to file a 1065? 

I'm looking at purchasing a home in my college town. I'm a 21-year old college student from NY. I will live in one of the 5 bedrooms and rent out the other 4 to friends. I have been pre-approved with a local bank to purchase the home with a business partner 50/50. He will not live at the home. I'll be getting a residential loan and I'm not sure if I can transfer into a LLC without them calling it. For the time being, he'll just have his name on the loan and we can write up a partnership agreement.

Please correct me if I’m wrong about the following:

For tax purposes, I’m assuming that I’ll be able to write off 1/5th of the mortgage interest and r/e taxes on my schedule A. For the schedule E, I’m assuming that I’ll be splitting the 4/5th remaining mortgage interest and r/e taxes with my partner 50/50. After that we’ll split the 4/5th of expenses such as insurance, depreciation, garbage pickup and repairs. Once I move out of the home in May 2018, the rent income and expenses will be split 50/50 from then on out.

Will we be subject to self employment income? Does me living there affect our ability to deduct legitimate rental expenses?