All Forum Posts by: Lindsey Leemis

Thanks @Logan Allec! :)

I agree with @Account Closed! I am currently doing that and expectations are key as well as record for taxes/documentation! 

Good evening!

I have a primary residence that is deemed - 80% rental and 20% primary on my taxes. I am renting out majority of the house.

Entity holding question:

When selling and doing a 1031 exchange, I believe you have to sell in one entity pick up with the same entity. So, if I sold from ABC LLC & did a 1031. My new replacement properties would be held in ABC LLC (please correct me if I am wrong).

So, for a 1031 of a primary, I am trying to move my funds away from primary (under my name) to rental (under an LLC). Ideally, I would like to sell from my personal name and do 1031 into an LLC but not sure if that would trigger a taxable event. Any loopholes? Is it best to change my primary property to sit under an LLC before a 1031? My advisor said that for a 1031, he suggested holding for 1 year then 2 years after completion of a 1031 (so under my name) then change the title over to an LLC. I want to be covered and not sure best way to do this.

Thanks for any advice! :)

Good evening!

I have a primary residence that is deemed - 80% rental and 20% primary on my taxes. I am renting out majority of the house.

Cash Question:

Can I pull 20% out and be non-taxed (held for 2+ years) and roll the rest (80%) by 1031 exchange into rental properties as tax deferred?

Ex. 50k equity & appreciation upon sale, 40k would go to 1031 like-kind exchange & 10k would be covered under home sale exclusion on capital gains tax.

Thanks for any advice! :)

Thanks @Dave Foster! Very helpful :)

Good evening! 

Looking for some 1031 Exchange experts! :)

I have a primary residence that is deemed - 80% rental and 20% primary on my taxes. I am renting out majority of the house. 

I was chatting with a 1031 Exchange company and they said the sale price of the property being sold is the amount you have to exchange up to even if you have deemed part of it as a primary. 

Ex. 

1) Sells for 200k - exchange at least 200k in value 

OR

2) 80% of 200k - purchase at least 160k in value like kind to fulfill 1031 

An ideas on if 1 or 2 is correct?

Thanks! 

Thank you @Taylor Brugna - very helpful :)

Hi @Steven Hamilton II & @Dave Foster! Thanks so much for your response!

So, since I lived within the property (owner occupied) for at least 2 years (by early 2018) that would exclude me from any capital gains tax and I can write off depreciation and expenses since I am also using it as a rental but those would be at a percentage? Say, 75 - 80% of the full value of expenses and take full depreciation or a percentage also?

Thanks again for all the advice & help!

Hello!

I've been lurking on BP for the past several...years #2015 and have been encouraged by recent podcasts to jump on and ask a few questions.

A little background, I purchased my first single family (4 bedroom, 4 bath) townhouse in early 2016 in Virginia as my primary residence with the intent to have roommates. I am in my mid-twenties and single. I put 20% down so a good bit of cash is tied up. I currently rent out 3 of the 4 rooms in my house, (it is not a duplex or triplex, so all under one roof) to 3 ladies to help cover mortgage, tax, insurance, etc.

I am trying to figure out what is the best tax strategy for 2016/2017 for investors who have tenants living within their house. So not separate living spaces (like a duplex or triplex).

My goal is to probably liquidate the asset at the 2 year mark and invest the no taxed capital gains + downpayment + mortgage principal towards real estate outside of my primary residence so I would ideally like to keep it (from a tax standpoint) as my primary resident vs. doing a 75% rental & 25% primary etc. as the numbers don't work out to keep it long term as a rental. The asset has appreciated 20k since purchase and think it will appreciate an additional 15 - 20k by early 2018 with current neighbors who have sold.

I have kept track of all expenses with printed receipts for power, internet, gas, etc. I don't have a ton of repairs to potentially write off (about $150 for 2016 as it is a fairly new construction) so I don't think that would be a huge tax break.

Any ideas on potential tax approaches on ways to handle the rental income and still get the tax benefit of no tax on the capital gains? Thanks in advance for any advice! :)

P.S. Any recommendations on CPA and advisor/strategist with a strong real estate background? I am looking to do some research and interview a few potentials to see who would be the best fit for me long term. Thanks! :)