All Forum Posts by: Josh Walworth

Perfect. Thank you, @Wayne Brooks!

I sold a property in early 2022 that I purchased and renovated in 2021. Do I need to write off the renovation expenses in 2021 or do I wait and add those to my cost basis when I file for 2022? 

Thanks!

Josh

@Karl B. Thanks!

Hello, 

I purchased an REO property that is currently occupied by the former owner. I reached out after closing and the occupant advised that she's in the process of moving out. I've offered her some cash if she could be out within a week and she has verbally accepted that offer. My questions are:

1) Is cash-for-keys violating any eviction protections the occupant may have?

2) I'm planning to hand over the cash after a final inspection of the property but should I have the occupant sign anything stating they voluntarily left and are forfeiting any rights they have to remain at the property?

Thanks!

-Josh

Thank you everyone for the great feedback thus far. From what I have been able to research on my own, it looks like this is subject to FIRPTA and Estate taxes. The seller is a German citizen and his wife was legal resident of Germany. There appears to be a tax treaty with German that would give German citizens a similar estate tax exemption as a US Citizen ($11.58 million in 2020) so I believe no taxes are due in that regard. 

In terms of FIRPTA, the purchase price is $125K. The property deed is in the name of the seller and his deceased wife. I'm buying the property as a 2nd home but may not keep it for the 2 years required to avoid FIRPTA. That said, is the seller's cost basis adjusted for inflation or is it based on the actual purchase price he paid in 1993 when he acquired the property? 

Thanks again for the great advice. I'm not represented by a Realtor or lawyer in this purchase so I'm relying heavily on the title company who doesn't seem to have enough experience with this type of transaction. 

Best, 

Josh

Hello, 

I'm in the process of purchasing a SFR in Florida from an individual living outside the US. This individual and his deceased wife are both on the title of the home and neither are/were US citizens or legal residents. They purchased the property as a vacation home in 1993 and used it as such until the wife passed away 5 years ago. The death records have all been provided to the title company. We're supposed to be closing this weekend but I just received a call from the title company stating that the closing will likely be delayed because they cannot find record of any estate taxes being paid upon the wife's passing. They also stated the tax would be 40% of an estate over $60,000 but were unsure if that applied to the sales price, the capital gains or the market value so they're attempting to engage a CPA.

Does anyone have experience or expertise in this area? We were just about to cross the finish line with this purchase and I'm afraid this tax issue, if accurate, could cause the seller to walk away. 

Thanks, 

Josh

Hello, 

I was contacted by a family friend who lives out of the country and is looking to quickly unload a vacation home in Kissimmee, FL which he's owned for around 30 years. The home is a 1600 square foot, 3br/2ba SFR on a 1/2 acre lot with attached garage in the 34746 zip code. The interior is a bit dated but is extremely clean and well cared as it has mostly been vacant outside of when they visit the area for vacation. They've indicated that they're willing to sell below market to be done with it quickly. I'm not interested in a rental property this far from home but I would be interested in a potential flip which I think could be done with very little work.

Can anyone familiar with home sales/values in the area provide some insight on how COVID-19 is impacting home sales/prices at the moment and what a rough price/square foot valuation range I might expect based on the (limited) info I've provided? 

Thanks, 

Josh

Please disregard my post above. Posted by mistake!

@chris adams

Hi Brandon,

Thanks for the welcome message. I have my keyword notifications all set-up. Such a great feature!

Thanks,

Josh