All Forum Posts by: Josh Wallace

@Tyler Gibson Thank you very much!

@Tyler Gibson Yes but there is a specific code or category that allows you to avoid paying the capitol gains tax. I have heard @Mindy Jensen speak of it before on podcasts along with others. If you do a live-in flip but live there for a minimum of two years before selling, you avoid capital gains tax up to $250K if filing single or $500K if filing jointly. I am curious what that tax code/category/program is actually called in order to do more research.

Good Afternoon BP!

I need some help. I am drawing a blank on the name/category of tax break individuals can receive after selling a home for a gain as long as it is their primary residence for 2 of the last 5 years at the time of sale. Whatever gain you make on the selling of the property will be tax exempt up to $250K individually, $500K if filing taxes jointly. I have read it on here before but am having a hard time locating the information again. Thanks for your help!

As a landlord, you should expect to take on certain responsibilities. If you charge someone to live in your asset/property, you should keep it in working order so you can draw the best possible rents. You should work it in to your rent that you cover routine repairs and maintenance. 

I like what @Marc Winter said. If it is found to be the fault of the tenant, the tenant is on the hook. If it is something that is bound to deteriorate over time, that should be built into the owner's repair cost figures. Having a good conversation of what is acceptable up front is the best policy. Communication and mutual understanding will keep great tenants in your properties.

@JD Martin I believe she said it was in the neighborhood of $175. 

Thanks, @JD Martin. She noticed something growing on her window and that's when she reported it to her landlord. I personally have not seen what she referred to but reached out for my opinion after the landlord sent her an invoice unexpectedly. 

It just seems a bit off that they would tell her she has to pay but will not provide her the results of the test she is being asked to pay for. To my knowledge, she did not demand a test to be done, rather informed them that something looked like it was growing and that it could be mold.

My friend notified her landlord that it looked like there might be mold accumulating in her apartment. We live within a mile of the beach, so moisture and mold can be a problem. A month later, the landlord sent her a bill for the mold test. There was no communication prior to sending her in the invoice stating that it was her responsibility to pay. When she questioned why the landlord feels that she needs to pay for the test, they sited the lease agreement where it stated that the landlord verified that there was no mold at the time she moved in and that it is the responsibility of  tenant to "maintain the premises in a manner that prevents the occurrence of an infestation of mold in the premises. Resident also agrees to immediately report to the owner/agent any evidence of water leaks, excessive moisture or lack of proper ventilation and evidence of mold that cannot be removed by cleaning."

The owner is pointing to this line of the lease and stating that it is the tenant's responsibility to pay for the mold test after she reported that there may be an issue (as stated in the lease to report immediately).

My question: who is responsible for the payment? I feel that it is the responsibility of the landlord/owner. They own in a place that is known for mold and moisture due to the proximity to the ocean. Furthermore, the landlord will not provide the tenant with the findings of said test they would like the tenant to pay for. I know this community is comprised primarily of landlords so I would love to hear what you all have to say. Thank you.

So if I follow, you would be taxed based on the GAIN of the sale of the property compared the the amount that you depreciated the property? Sorry for the confusing wording.

I was discussing depreciation schedules as a benefit for real estate investors over the weekend. The person I was speaking with seemed to think that the write off involved with a depreciation schedule would be due upon sale of the property. Is that true or is depreciating a rental property a true write off? 

My mom came to me today asking about a strategy she heard about where people are paying off their mortgage in 5 years. I was very skeptical about this and told her not to do anything before she did more research. In her excitement, she sent me a few "informative" videos she had found. From the opening line of the videos, all I could think of was "RUN!!!"

I wanted to see if anyone here has ever heard of this strategy and if so, has anyone tried it? From what I could find, the gurus are telling people to convert their personal checking accounts into a HELOC account. This link talks about the theory: http://www.claytonmorris.com/blog/2015/7/20/how-to...

My brothers and I keep telling her no but I would love to poll the audience here to get other opinions. 

Tagging people here that I feel may have come across this before...

@Brandon Hall @Rik Wallace @Brandon Turner