All Forum Posts by: Kevin Sapp

Hi all,

Recently had my first experience with Reedy and Company Property managements tenant turnover. Before I share I'd like to hear from others to compare experiences to see if mine is a one off or typical.  

Kevin

@Greg H. @Fred Heller  Thank you for the confirmation.  I simplified the situation to the simplest component. The roof will be repaired.

Any comment on the increased rates and "act of God"?

I've been told that in NC there are multiple price tiers for future insurance depending on the number of claims in the past 3-5 years and severity of the claims. There is no waiver for "acts of God"  However, someone in Texas claims otherwise.

Thank you

Kevin

Hi,

Have a property in Texas that received a hail damage settlement.  I own the property outright. A friend said that if I don't use the money from the insurance company to repair the roof it is considered insurance fraud.  I know if I wreck my car and choose not to get it fixed and keep the insurance money, that's just fine...

The same investor friend said that because hail damage is an "act of God" it will not have an impact on my future insurance rates. I don't think that is the case.

Any insurance professionals in Texas out their that can clarify these questions.  

Thank you,

Kevin

Thank you all for the responses.  @Christopher Smith very helpful.

Kevin

Hi,

Situation is a property that I own outright, had roof damage and received an insurance settlement. Because of the circumstances, sold the property, the settlement will not be used to repair the property.  Some of the tax law I've read implies the settlement has to be used to repair the property and it is not taxed. But if not used to repair, it is taxed.

Any tax folk out there that can shed some light on this situation? 

Thank you,

Kevin

@Dave Foster thank you for the reply. I've discussed similar things with a real estate crowd source company, initials RM. The had sell here, while similar to remainder trust is giving up control. The RM group of NN and NNN properties would pay 6.5%. Most of these crowd source funds are fairly new with little verifiable history.

I will say that the RM fund had nice name tenants, the fees, however, just silly.

Kevin

Tax wizards, a question for ya.

I have a property that has been depreciated for 24 years, lets call it 90K of depreciation. The property is worth about 150K, I'll have capital gains after minor increases in the basis of 25K.  The property is free and clear of any debt.  I'm looking at a big tax bill. I could do a 1031, frankly, prices are too high right now and this is not what I am interested in.

If I donate this to a charitable remainder unitrust, say at 7% (I'm 55, wife 50), without depreciation considerations my tax deduction is around 10K.  What does recapture do to the tax deduction in this case?  Would it be possible to have to pay tax on the donation?

Thank you,

Kevin

Lance and Brandon thank you for the information. The kid is my son. I would gift to him. Then he would sell in an attempt to reduce the taxes.  I make money, so additional gain of 130k to my income will be taxed all at 33%, whereas a 19 year old filing separately as single will top out at 28% for 35k and rest taxed much lower. 

Unless, there is a different way or long term capital gains rates for me at 20% and income for the kid...

Kevin

I have a rental property in service and depreciated since 1993. Purchased for 110, selling for 146. Don't want another rental right now, so 1031 to a rental not what I'm considering.

What are issues with 709 generation skipping gift to the kid, he Sells? Should bump the basis, what about the taxes on the depreciated part, know it must be recaptured, but at what rate. The kid has no income, college student.

Thoughts on tax rates and legality?

TIA

KEVIN

I have a property in DFW, DeSoto. Rents for $1300, no mortgage. Has been a great rental for 25 years. Tenant is moving out. Property values in DeSoto are increasing for the first time in many years.  It's a 3/2 all brick, vinyl soffit/facia on Claire View Drive. Suggestions for selling now or keeping it rent as a rental.  I'm remote, ex-Super Collider employee for anyone that remembers, but I do have some family in the area that could monitor but not interested in helping in the rehab.

My guess is new carpet/paint would bump rent to 1595, however, taxes have gone up so much and continue to go up as to wipe out most of any additional rent gains.  

So, sell as is, fix and rent, fix for sale, sell and hold the note...

Thanks

Kevin