All Forum Posts by: Joseph Medina

I want to follow this thread as this is what I want to do as well! @Jason Wray can you not to pull the cash out of the HELOC and place it into your personal account?

Because, you can pull the cash out of the HELOC and place it into your personal account and then set up a separate account for the house you want to buy, and transfer the cash into that account for the new house and then when you do that you can now write off the interest from the HELOC on taxes.

Either way I want to see how this thread plays out which is why I am commenting 🤣🤣🤣

IRS peeking into your income,  Realized Cap Gains Increase, UNREALIZED CAP-GAINS TAX, DEATH OF THE 1031 EXHANGE AND MORE!!! 

(I AM NO CPA AND THE FOLLOWING ARE MY VIEWS BASED ON MY INTREPRETATION OF THE ATTACHED DOCUMENT. THIS IS NOT ADVICE OF ANY SORT) 

So, ever since i started my REI i have obsessed over REI strategies and taxes. I absolutely hate the thought of putting in so much hard work to make a property desirable and when i sell it i have to pay a tax on it while the congress man who receives this money has a 500$/ month haircut stipend, and private parking, and other bulls*** benefits that my tax dollars pay for, so that that very congress man to only work 136 days out of the year and get paid a salary more than the average household income. (in my opinion i think public servants in roles like congress and etc should get paid what ever the median salary of the US employment market) and on top of that to have them spend the majority of those 136 days wheelin and dealin and arguing over s*** that leads them to not get anything done! I am an army OEF veteran and the young age of 32 i have lived a life greater than most of those congressmen will ever live in their unmoral lifetime (congressmen is gender neutral BTW.) rats get fat while brave men die!

Okay, so enough of the ranting i will touch more on the corporate stuff in next weeks 4-Horseman of The Economic Apocalypse: Employment

4-Horseman of The Economic Apocalypse: Inflation is here ----> https://www.biggerpockets.com/... 
4-Horseman of The Economic Apocalypse: Affordability is here ----> https://www.biggerpockets.com/...

So, what is the affect if this monstrous plan on RE Investors. 

1. REPEAL DEFERRAL OF GAIN FROM LIKE-KIND EXCHANGES

Well as the rumors have it, the 1031 exchange is on the "chopping block "as promised during his campaign.  

Actual PDF here ----> https://home.treasury.gov/syst...  

" Proposal
The proposal would allow the deferral of gain up to an aggregate amount of $500,000 for each
taxpayer ($1 million in the case of married individuals filing a joint return) each year for real
property exchanges that are like kind. Any gains from like-kind exchanges in excess of $500,000
(or $1 million in the case of married individuals filing a joint return) during a taxable year would
be recognized by the taxpayer in the year the taxpayer transfers the real property subject to the
exchange.
The proposal would be effective for exchanges completed in taxable years beginning after
December 31, 2021." 

This one is fairly straight forward. For any property or properties amounting or equaling 500,001$ or more in a taxable year the investor will be taxed. What tax? Well the way it reads is that you will probably be taxed at a Capital Gains Tax. The exact verbiage is... "The proposal would treat the exchanges of real property used in a trade or business (or held for investment) similarly to sales of real property, resulting in fewer distortions."  

This is almost ground shattering for some major players in the Multi-family space or Commercial Space. This is one benefit being ripped away from those guys. A lot of people complained about the 45/ 180 rule... well if its not carved out of the bill by congress it could get axed all together! 

2. Carried Interest as Ordinary Income and Syndicators taxed as Self-Employment Taxes 

"This one is dedicated to all of my syndicators and partnerships out there!!!" "TAX CARRIED (PROFITS) INTERESTS AS ORDINARY INCOME" 

The Actual verbiage is:

" The proposal would generally tax as ordinary income a partner’s share of income on an
“investment services partnership interest” (ISPI) in an investment partnership, regardless of the
character of the income at the partnership level, if the partner’s taxable income (from all sources)
exceeds $400,000. Accordingly, such income would not be eligible for the reduced rates that
apply to long-term capital gains. In addition, the proposal would require partners in such
83 General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals
investment partnerships to pay self-employment taxes on such income."

This particular section seems straight forward; however, if one reads the following paragraphs it gets complicated real quick and in a hurry! 

"To the extent (1) the partner who holds an ISPI contributes “invested capital” (which is generally money or other
property) to the partnership, and (2) such partner’s invested capital is a qualified capital interest
(which generally requires that (a) the partnership allocations to the invested capital be made in
the same manner as allocations to other capital interests held by partners who do not hold an ISPI
and (b) the allocations to these non-ISPI holders are significant), income attributable to the
invested capital would not be recharacterized."

" However, “invested capital” will not include contributed capital that is attributable to the
proceeds of any loan or advance made or guaranteed by any partner or the partnership (or any
person related to such persons)." 

I posted a few sections above are sections I have a hard time understanding and if anyone can help clear this up I and the community alike would be grateful...

3. "MAKE PERMANENT EXCESS BUSINESS LOSS LIMITATION OF NONCORPORATE TAXPAYERS" 

"The proposal would make permanent the section 461(l) excess business loss limitation on noncorporate taxpayers.
The proposal would be effective for taxable years beginning after December 31, 2026."

"The proposal would bring the tax treatment of losses from non-passive pass-through business
activities closer in line with the tax treatment of losses from corporations and passive passthrough business activities. Corporate losses do not flow through to individual owners. Instead, they are carried forward (or backward) to other taxable years to offset other income sources derived from the same business. Losses from passive pass-through business activities face somewhat less restrictive constraints. They may generally only be used to offset income derived from other passive pass-through
business activities. Generally, they may not offset other income sources, such as wage income" 


So, this one is interesting and kind of a slap in the face of some investors. So, as investors we take on risk and risk our own (most of the time) capital, and one of the benefits of this risk, is if the venture does not pan out successfully we can write off the loss against other forms of income. Now, this one has an effective date of 31- DEC-2026 (weird for sure). As it is kinda self explanatory what the are seeking to do by 01-Jan-2027 is to prevent investors from carrying over loses of pass-through businesses to other sources of income such as w-2 wages. So, if you're a professional investor this does not necessarily excuse you either. If you use your paper losses on your rental properties to off set other income from whatever other ventures you have this will be eliminated. If you own LLC A, B, and D, and property D is your money pit and LLC B is your cash cow you're no longer able to carry the losses from LLC D to offset your gain from LLC B. You're only allowed to to carry the loss from LLC D forward years and backward years to get a tax refund the current year you file. (kinda using your tax-returns as some sort of weird savings account as you wish)


4. REFORM THE TAXATION OF CAPITAL INCOME

 "Tax capital income for high-income earners at ordinary rates. Long-term capital gains and qualified dividends of taxpayers with adjusted gross income of more than $1 million would be taxed at ordinary income tax rates, with 37 percent generally being the
highest rate (40.8 percent including the net investment income tax), but only to the extent that
the taxpayer’s income exceeds $1 million ($500,000 for married filing separately), indexed for inflation after 2022."

Basically, if you make any capital gains over 1 million you will jump from the 20-ish% tax range to the 37% ordinary tax range. so for you million dollar earners you're gonna fork up that 370,000$ to Uncle Sam for him to pi** away on something stupid or some social program that someone out there is abusing! 

"Treat transfers of appreciated property by gift or on death as realization events. (Basically Unrealized Capital Gains) 

Under the proposal, the donor or deceased owner of an appreciated asset would realize a capital
gain at the time of the transfer."

@Brandon Turner has said on the BP podcasts a handful of times he set up properties for his children for their college fund, but the way this is written is that if he transfers the property to them at the time of their 18th birthday, he will be taxed at a Capital Gains Tax at the current market value. If he were to pass away his heirs would then be responsible for the capital gains tax if they were to sell it. Basically, the "Step-Up" program is eliminated. They also target trusts in this section basically saying if your property has not realized any gain loss event in the past 90 years on 31-Dec-2030 it will be the first event. The way it is written is that the trust itself (since trusts are considered stand alone entities) will be taxed at the capital gain rate. There is about 4-5 more paragraphs that outline exclusions if you wish to read them.   


5. ENHANCE ACCURACY OF TAX INFORMATION ( the bullet point you probably wanted to read) 

"The proposal would also treat ALL information returns subject to backup withholding similarly. Specifically, the IRS would be permitted to require payees of any reportable payments to furnish their TINs to payors under penalty of perjury."

" The intent of backup withholding is to serve as an enforcement tool in ensuring payors and payees are compliant with their reporting obligations. Requiring payees to certify their TINs to payors on a Form W-9 or equivalent form reduces the level of enforcement necessary to ensure information is accurate."

Now, the way I read this (and please if any CPAs here can clarify this i would be very grateful because this one has me really "spooled up") is that for any transaction made payable to you over 600$, as a business or person, will be required to file a W-9 form with your Taxpayer Identification Number (TIN) if you don't then you are committing perjury. 

I included the actual document above and here (https://home.treasury.gov/syst...) so that way i try not to misinform you guys. Yes, i kinda cherry picked some of the most relevant information to put on here. But, if you want to read the document yourself, again, it attached. If you're a CPA and see any discrepancies or disparities in my interpretations please let me know.  

the eviction moratorium will probably not allow you to evict, as it has been extended. if they threaten to hit you that could potentially be a legal matter and even though it probably will not hold up in court, but getting a police report might be enough proof to get them out.  

@Andrew W., hey bud I am going to echo what everyone else has been saying. finding 15% COC even on multi is going to be uber hard. because when you enter the multifamily place the prop taxes shoot through the damn roof. HOA fees in some ares will eat you alive as well in the multi space going as high as 1000/ MONTH. think of the appreciating submarkets here in Houston as the Mercedez Benz Arrow. The Fort Bend/ sugar land area is popping, the clear lake/ Webster area is exploding and the woodlands/ conroe areas are poppin. you also see good growth in the Katy area (west) when looking at a Houston map look at the tiny circle and draw a big backward "C"  around it and those areas where your "C" are the bad areas of Houston. I think until the California money finally makes its way down here and settles and we might have to wait before we can raise the rent to the 2xxx to 4xxx plus range. finding a 15% COC is gonna be hard, but not impossible. 

@Carla Gordon and @Chris Lockwood, Yeah this is not a good COC, but right now finding good cash flow on SFR right now is super hard. you could do what Carla said and do multifamily. you don't need a large multifamily just a duplex, triplex or quad could drop the trick.

But back to the original deal... I don't know how your after tax income is higher than your pre-tax income. COC 1.28% and then COC after tax: 3.2%. this is a single family home, and even though knowing the cap rate is kinda cool, its a residential home and the value is based on fair market AKA appraisal so cap rate is not warranted.

I am having a hard time deciphering some of the numbers here... but I am going to approach it the way I see it. your net rent is equal to your NOI. Just as I would look at a company's 10K your gross income is $24,000 and your net income is $12,058 which just means the amount you have left over from all expenses. the only way I would think your NOI will differ from net rent/ income is if you charged for parking or had a coin mech laundry or something like that.

I mean those property taxes are really expensive for the area. But they could be gentrifying the area. insurance seems a little low, but it might be comprompable for the area, but if the prop taxes are 7K a year you're gonna be looking at home insurance around the 3-4K area. 

I am going to assume you're putting 20% down on this place, and if so then I don't see how this property will cash flow positively because that puts purchase price close to 250,000.

But, I will say this based on the extremely ROUGH reverse engineering of these numbers through the BP Calculator I would run far far away from this deal, because it will lose you (-761)/ month. that is not including HOA fees. With the numbers you're giving me you will need 2100/ in rental income to see only 12/ month in positive cash flow. that is a twelve. https://www.biggerpockets.com/...  for your property results bud. this is from my analysis bud and my analysis is saying this is not a good deal. 

I loved this information! please post more of this! :)

Man @Brandon Beaudoin i am commenting so i can be kept up to date with this thread.

I am a bit confused though. you sold a property under a 1031, and you found two cheaper properties to buy so you have identified two properties and still need another property that will meet the 90% rule but keeping the 200% rule in play... 

Hmmmm why not let go of the two properties you have identified and find a portfolio to buy i mean it will increase your 90% value but as long as you don't blow your 200% you should be good... sounds hard considering you have 180days to close...I dont know but i am interested to see how this plays out!  

I heard the second living creature call out, ‘Come!’ And out came another horse, bright red; its rider was permitted to take peace from the earth, so that people would slaughter one another; and he was given a great sword!

 So, here for the second week we have on of the most debatable topics of the economic apocalypse "Inflation." in the economic world we have inflation and deflation We are gonna discuss inflation as that's what we are having a problem with at the moment. 

We are in a interesting time in the economy, and we have heard Janet Yellen talking about the economy is growing too fast. Hinting at interest rate hikes. Historically, through COVID Jerome Powell has remained dovish on the matter and has stood his ground about not letting his dove dive into the ground and creating negative interest rates, but he has lowered them to help the economy. 

Now, we all have heard that Powell has said something along the lines of "we need inflation" and many of you or (the inclusionary Us) are sitting there thinking what?!?! Well, lets try to understand why. This is the first time in the history of the world where the entire WORLD economy came to a screeching halt. Think about the repercussions of stopping a full speed train dead on its tracks. What would happen? a disaster would happen. box cars would fly all over the place. Over the train around the train, and probably under the train. the world did that with the economy. let me repeat that one more time THE WORLD DID THAT. 

Well, how do we measure inflation. By the CPI the Consumer Price Index. it is a measure of how much stuff out of a basket of "traditional goods" can a 100$ buy. Well in certain parts of the US that 100$ will buy you the entire country of Tajikistan, and other parts it will be a lick of an ice cream cone on sale. 

with this very illustration it highlights a very broken measure, because a 100$ here in Houston should be the same 100$ in New York and the same 100$ in Hawaii. This is where the Chapwood Index comes in. It uses the same thing a basket of goods, but instead of 100$ they use 500$. here is a website to the index to check out your near by large city... this illustrates the difference. http://www.chapwoodindex.org/

So, commerce stopped, but the bills did not. providers of services held out their hand for the bills, because the "VID" does not effect money. So, all these businesses took out loans to just make the payments, probably increasing their long term debts. 

So now, we have all this free floating debt out there and no way of paying it back, because we halted people from going to work to be able to produce. So the deficit gets larger and larger and larger as time goes on ticking. Inventory starts to go bad or outdated, and people are needing to pay their RENT (which we will cover later *insert eye roll*) as Paul Getty stated "If you owe the bank a 100$ thats YOUR problem, but if you owe the bank 100 million dollars thats the BANK'S problem." 

So, we need more money out in circulation to fund these businesses that way they do not defaulting on their loans and these notes start imploding on the big banks ledgers "books." That way when you look at the M1 supply it rockets off in 2020. http://www.shadowstats.com/alt...

What does this mean? STIMI MONEY BABY! But as you look at the chart the M1 shoots up and the M2 is wanting to go up to. 

M1= liquid cash aka physical money (dollars and coins)

M2= Money in your banking account (credits) 

M3= Money in your bank's bank account (loan-able) 

easiest way to think of it is if the world did not have card readers how many steps would you need to take to get to physical cash. 1 step to pay 

2. access to bank to get cash, and then pay 

3. get loan, access bank to get cash, and then pay. 

When more money enters the market the value goes down and prices go up. Supply and demand more of it out there on the streets the less its worth, so the more i need to charge to get the same percentage return. 

Now, how do we combat inflation? Typically through the hikes in interest rates. If we hike interest rates we could very well destroy the economy as we know it. Why? 

lets look at it. Think of the economy as a big a** pyramid. at the very top is the world bank AKA IMF International Monetary Fund. (not gonna dive deep on the XDR and stuff but its at the top) then right below it are the national banks e.g. 

the federal reserve

Bank of Canada

European Central Bank

Bank of Japan

Reserve Bank of Australia

Reserve Bank of New Zealand

The Bank of England. 

So, the FED requires each bank to keep a certain "reserve" amount available for the fed to pull at any given moment and overnight might i add. the Fed also loans out to these banks at the national interest rate we are all familiar with. So, the banks, the same ones you and i use to hold our cash, pay the Fed for this money.  So, when Big Corporation comes to the bank for a loan they take out a huge loan at a few points higher than the rate they are borrowing. Surprise if you didn't know the banks are in it to make profit. 

So, now big business has this loan that their paying on they are able to hire, buy stuff, pay stuff off, and more. when interest rates are low the business can borrow for super cheap and do not have to pay much interest on their loan and it doesn't eat into their bottom line, so they are able to keep employees on staff. 

Now, the problem we have here in 2021 is that we have outrageous inflation and high unemployment. Usually its high inflation and stable employment. So, the fed raises the national interest rate, businesses borrow less, productivity becomes less, less product on the shelves, and because unemployment goes up less money in circulation.

We have the complete opposite happening. Businesses are not able to produce as much, BECASUE the government is paying them to stay at home, interest rates are low keeping big business in... well business, more money in circulation, and less product on the shelves because no workers to produce. So here we have two driving forces of inflation we have: 

No Workers wanting to work 

More money in supply. 

The first one is where the bomb lies. no one wanting to work. 

As i said earlier to speed up the economy the Fed Lowers interest rates to get business money cheaper to hire more to produce more which generates more. 

to slow it down raise interest rates charge more for money big business lays off employees, so production drops. 

this very illustration is directly applied to REI. When interest rates are low investors buy up everything in sight because its cheap, but no investor wants to pay back a 7% mortgage when they can pay back a 3% mortgage.

Here and now, we have outrageous prices, and no one wanting to work because of this stupid f****** stimulus money. Because of the Great Recession big business, to protect their bottom line in case of something like the current situation were to happen so they can weather the storm, kept wages low. Now, when Uncle Sam introduced this awesome unemployment package the majority of the line workers GOT A PAY INCREASE to stay home, and the worst part of it all the government keeps paying them!!!! 

So, if the FED increases interest rates it will only keep big business from hiring people, because its more expensive to operate day to day. So, the government is still footing the bill with stimulus. and the circle goes round, and round, and round until the economy collapses. 

So, what's the fix? 

well i have an idea and i have no idea how well it can work of if it is even legal. But the Rebel Capitalist used the perfect analogy of this stimulus money is like heroin. and the economy is adducted to it. If you pull it out of the economy all together crime will shoot through the roof, your homeless population will shoot through the roof and the situation becomes extremely dangerous. As i have said before in the fist post of this series i honestly think all this civil unrest has nothing to do with an unjust system or a system rooted by bigotry, but rather all this civil unrest is caused  by an imbalance of wealth.  it is no secret that the majority "minority" make up the lower social class and the working class. and the top 1% of wealth is held by the minority "majority". 

the solution is to stimulate the businesses. 

Crazy I know, but hear me out. Anyone reading if you have ever worked in healthcare you're very familiar with CMS. Centers of Medicaid and Medicare Services. there is a ton of paper work involved with getting reimbursed for taking care of children, the elderly, and the uninsured. 

So, if the business were to keep their wage the same lets say 10$/hr and the government were to put up (lets say) 5$/hr the person working will be making 15$/hr. So that same employee jumps from a 20K$ dollar tax bracket to a higher bracket of 30K$. the government gets back the money they injected into the economy in the form of taxes. the business that hired the employee keeps their margin the same because the pay increase does not affect their bottom line, since the government is paying for the extra 5$/ hr.  the business will probably produce more or the same and then they will also get taxed accordingly. that employee is now able to afford better housing, and they are able to move up into better neighborhoods, the gap between the middle and lower class starts to get a little smaller. And now the stimulus is not going to people sitting at home not producing. it is encouraging employees to return to work to stimulate the economy, because that's where the free money is,  and when the economy is too rapid and out of control pull the stimulus out of the business, the workers return back to 10$/ hour and the economy slows down. 

Also by doing this it will create more federal jobs, because you will need auditors to audit the businesses to insure every last cent goes to the employees and the businesses cannot line their books with free money to prop up their numbers. 

@Casey Mayton

@Casey Mayton and @Evan Zeigler, I would like to address a few things in this post. I have been trading Stocks and currencies for about 10 years now. I do quite well and have a decent track record. 

Mr. Zeigler stock trading has a handful of differences compared to REI, but for the most part they're the same. For instance, lets say you're an appreciation guy, would you buy a property with a high crime rate with no businesses looking to start up there or no strong job market? Probably not, just the same as i would not buy a company with high amounts of short term borrowings with no Treasury Shares, Cash Reserves, or liquid-able assets. But Lets say you're a cashflow guy, you probably would not buy a property with huge property taxes, because property taxes eat up your cash flow in REI, and if you're a growth investor in stocks picking companies like Amazon (AMZN) or Boeing (BA) is not a good idea because they provide no dividend.

Mr. Mayton, this is strictly you're call. Let me ask you a serious question. Have you ever heard of a university offer a Stock Trading Class? No, and I sure haven't and I am considered a philosopher of Psychology LOL. I say that to say I have spent my fair share of time on university campuses. The reason they don't is the "risk". So, EVERY broker or trader is self taught. NOT A SINGLE ONE took stock trading 101. The traders on Wall St. were trained by the traders before them in their investment firm or read a few books. The brokers have to get certified, because its an insurance policy kind of thing to protect people from people like Jordan Belfort. the courses are stupid and the only way to get any type of certification is you have to be sponsored by an entity that is already sponsored. So, if you decide to go this route DM me and ill be more than gladly to send you some titles to read to educate yourself on stocks. Because in the end you're gonna pay someone a commission to do the same thing you can do, that you can do for free with a little bit of reading and time. 

People will argue both sides you have two perfect examples in each realm to prove both systems work. Stocks with Warren Buffet and REI with Donald Trump and others. I say if you're educated in both do both. Why? Because, if you're good you can finance your own deals like a bank. throw your money into a few trades let it grow 10-20% square off your positions and take the money and buy a good property. Refi the property and throw that money into the market again and repeat. make sure you don't owe commission fees. With stocks you're reading 10Ks ALOOOOOT of 10Ks and you might feel embarrassed to admit owning part of because of whatever reason. For example, I own Dollar General (DG) and I say it with pride, because if some asks me why I can say their financials are ROOOCK SOLID!!! they don't pay a dividend worth a f*** but the company is solid by my measure at least. and in REI youre gonna scour the internet and MLS for deals that make sense and youre gonna look at crime reports migration patterns and etc.

One of the most solid companies i have run across is the Home Depot. One of the most solid companies i have ever analyzed! when you look at their financials they have negative equity and on the surface it looks bad. when you look at their revenue it has grown the past 10 years by at least 10%. The numbers check out when you see what their reportable income is. So how can they have negative Shareholder equity? because they are AGGRESSIVELY  buying back sooooo many shares which drives the price up and because they are buying back their shares they are using their cash reserves and its showing up negative on their balance sheet (here is an article dedicated especially to the topic and they use Home Depot as an example...https://www.oldschoolvalue.com... 

So, which one do you want to choose IF you had to choose only one? Lets run through some tax reasons for both as i have to do taxes on stocks and owning a primary residence. 

Stocks- you will pay double taxes on unless you invest through a self-directed Roth IRA. With a SD-R-IRA you will pay taxes Now and when you liquidate your positions you DO NOT pay taxes then. any dividends paid through your SD-R-IRA will also be tax free. If you use a brokerage account you will pay Capital Gains Taxes at the 2X% range once the profits are realized (meaning the funds have cleared and available for withdrawal out of the account. BEFORE any commissions or what ever. ANNNND you will pay taxes on any dividends earned as Earned Income at the standard 3X% rate. This type of investing offers some benefits like if you don't like how the company is performing you can sell it with a click of a button and you can buy with a click of a button.

I would strongly advise AGAINST any margin trading. Even someone like myself i don't use margin because you have CEOs like Elon Musk out there that "trolls" people and their money. he has done it a few times with his own Tesla (TSLA) stock and with the dumb a** dogecoin. He can send out a tweet (on purpose might i add) and it will send TSLA sky rocketing and its a good day or he can tweet the infamous "i think TSLA stock is too expensive" and it drops 20% in one day. that 20% on margin could get called and the broker is gonna liquidate what ever positions you have to the amount you owe plus interest to cover the balance without your say so. 

REI- this one you get way more tax benefits. you get get to claim deprecation, you get to do Cost Seg., you get to claim the interest you paid on your primary residence up to 750,000 and 10,000 dollars on property taxes, and you get to claim endless amounts of interest paid on investment properties and the same for property taxes. You have a 1031 exchange, (that might get chopped under the Biden administration) but you have it for now. you have 180 days to close under the 1031 and must identify a property in 45 days. there is also a percentage rule that applies too and i cant think of them right now but in essence it prevents you from just hurrying up and "cherry picking" a random property just to end the 45 day clock or the 180 day clock. you get equity in REI that you can leverage, you get loan paydown (which increases your credit score and reputation at a bank), and finally you CAN get appreciation if you buy right.

I have been advised to not add an extra tax shelter for your money that's already in a tax shelter. AKA like taking a loan out against your ROTH IRA to buy real-estate. Something weird happens tax wise and I'm not sure what!

All in all bud i hope this helps! 

@Luke G., Hey bud thanks for that. can you make an entire post dedicated to this topic? Because, that was super helpful!