All Forum Posts by: Kerry Malarkey

Federally (HUD), you are exempt if you have & self-manage three single-family homes or less, or a multifamily home of four units or less that you occupy one unit of. One off the reasons I don't hire a property management firm. You can still pay for a service to do backgournd/credit checks and employment/rental verifications.

Some states/cities have their own rules, so you need to know what your local rules are also.

Thank you David for your reply.  Yes, the ownership is joint and the records show each o or percentage ownership.  But the rental bank account is actually only in my name, though the rental financial statements I do provide shows a reserve reconciliation.  Hmmm.

I and my step-mother are partners in one residential rental property 50/50. I and my two sisters will inherit the rental. My step-brother will inherit her primary residence. My stepmother died Dec 25th 2023 (96 years old!). I have been managing and preparing the rental financials/tax statements/cash distribution for the last 15 years on the property. For the last several years we've been paying into a capital improvement reserve (via deduction from the cash distribution) for the purpose of replacing the roof. The reserve funds sit in a separate ‘Rental’ bank account. My question: Are those cash funds part of the rental property partnership, which would go with the rental property inheritance, or would they be considered separately in the probate?

A second question regarding stepped-up basis to market value. I presume the portion of the rental that was owned by my step-mother (50%), and that will be inherited by myself and my sisters, will have the basis increased to FMV. I had also presumed that my personal current ownership (50%) basis would not be stepped up, but recently was told this might not be true. Any further insight into this would be appreciated!

The property is located in Oregon.

Installment sale to spread gain to take advantage of 0% cap gain rate. Don’t want to find another property for 1031 exchanged. I’m retired.  

Thanks @Chris Seveney for reply.

Question: what keeps anyone at any time from cutting the timber on my land...?

Does anyone have examples of use restrictions they've used in a land sale contract?

Thanks!

I am looking at selling 14 acres of raw forested land in the state of Washington to a buyer using a 3 year installment with balloon payment. I need to spread the land purchase payments out over 3 years for tax reasons... ergo, why the installment contract and not a straight sale.

Couple of scenarios I'd like to protect myself from: 

1)  How do I protect against the buyer logging and selling the timber, which is worth quite a lot, which would reduce the value of the land?  Can I put a clause in the installment contract or the deed that it can't be cut/sold until the loan is paid off?  Or that the buyer would need prior permission and agreement from me?

Also, how can I protect against the buyer engaging in costly improvements that he end's up not paying for... resulting in liens against the property?  I don't necessarily want to shut down any improvements, but don't want to be left hung out in the cold with unpaid liens against the property.  Would I be able to put a restriction in the contract (perhaps on the deed?)?  Maybe requiring money be put in escrow to pay for specific improvements the buyer contracts with another party to perform (for instance , to put a road in).

Thoughts?

Hello,

I'd like someone to confirm my understanding of the treatment of a gain on a land sale. The offer is a large down payment with owner financing the rest. What I'm trying to do is determine the amount of the contract I'm going to carry in order to not go over certain income limits which will affect my insurance subsidy (the buyer is open to adjusting the carry amount of the installment portion). Basically, I need to keep my capital gains around 10K per year. Below are the details that I've calculated using the IRS Publication 537 worksheet. What I hope is to have someone confirm that the gain on the amount of cash I'd receive for the first year (the remainder would be paid in installments) is calculated correctly. Thanks much for your help!!

Hello,

I'd like someone to confirm my understanding of the treatment of a gain on a land sale.  The offer is a large down payment with owner financing the rest.  What I'm trying to do is determine the amount of the contract I'm going to carry in order to not go over certain income limits which will affect my insurance subsidy (the buyer is open to adjusting the carry amount of the installment portion).  Basically, I need to keep my capital gains around 10K per year.  Below are the details that I've calculated using the IRS Publication 537 worksheet.  What I hope is to have someone confirm that the gain on the amount of cash I'd receive for the first year (the remainder would be paid in installments) is calculated correctly.  Thanks much for your help!! 

Right now I'm having a hard time figuring out what to look at regarding a tenants Chap 7 BK. I'm on PACE and have looked at a 'Case Summary' that shows the BK was discharged. What I'd like to see is some sense of what the debt's were that were discharged.  I've been told to get a copy of their "schedule", which I presume is the form they send in that lists creditors and amounts owed.  I cannot locate that in PACE...  is it there?  I did find a list of creditors under 'Query' but it only has the names and not the amounts owed.  Any knowledge on what report/document would get me this? There are several listed but the titles are not real informative about the contents!

Thanks!

thanks Chris Mason.  They actually both have W-2 jobs.  He has a salary + commission sales job and has done well.  She is just starting in the Starbucks management training program and her salary is more for future potential.  Starbucks locations are all company stores managed by w-2 employees.

Right now I'm having a hard time figuring out what to look at regarding the BK.  I'm on PACE and have looked at a 'Case Summary'  that shows the BK was discharged.  What I'd like to see is some sense of what the debt's were that were discharged.  Any knowledge on what report/document would get me this?  There are several listed but the titles are not real informative about the contents and since I'm charged for each one I pull I'd rather pull only ones I need!

Thanks!