All Forum Posts by: Mark S.

Hi Nick,

Are there any tax benefits related to a multi-family property sale with subordinate owner financing? For example, a bank financed traditional sale price of $1,000,000 with an original cost basis of $900,000 results in a $100,000 capital gain. Would there be a tax benefit to the seller if he financed 5% ($50,000) of the purchase price? Would this reduce the capital gain if the repayment of the note was spread out over 5 years?

Thank you all. Responses were very helpful.

There seems to be some conflicting information online regarding when 1099 forms are required for small landlords (see link below). Does anyone have a definitive answer on this? Would I need to issue a 1099 form to my girlfriend for bookkeeping / turnover maintenance throughout the year (well over $600) if I own a few units? Rental real estate is not my primary source of income.

http://www.auburnmainecpa.com/1099s-required-small...

Hi Nicholas,

As the sole owner of several real estate properties (taxed as Schedule E rental real estate), what is the proper way to pay a live-in girlfriend who acts as a property manager to my properties (i.e. screening, cleaning and painting for tenant turnovers)? She is not a full-time employee, however, with numerous turnovers a year, she earns about $5,000. Would I need to fill out a 1099 at end of year showing total wages? Thank you.

Thanks Matt. Appreciate you taking the time to respond. How many people, on average, attend the meeting?

Not sure if this post is in the correct forum category, so please go easy. Looking to find a local meet-up group for buy and hold investors in the southern New Hampshire (NH) area, specifically Nashua/Manchester. If anyone knows of any, please let me know.

Hi Shannon,

Being an investor in southern NH, I can tell you that Manchester has some difficult sections, especially for unseasoned investors. I would advise you to check out the following link, which tracks police reports in the Manchester area. 

https://www.crimemapping.com/map/agency/223

By the way, the first time home buying certificate would carry over to NH, as long as it is, in fact, your first time buying a home. You do not need to apply for a mortgage with a NH based bank if buying in NH. Any national bank would do. In regards to obtaining the best rates and terms; however consider applying to a local community bank, as properties out of the bank's market area would generally be riskier.  Let me know if you have any other questions. Happy to help!

What are my options if the property was purchased in 2017, but a partnership LLC was not established during the year? Can I establish one this year (2018) and use the income and expenses from 2017? Thank you.

Hi Nicholas,

I have been getting conflicting information regarding the Home Office Deduction. Can you deduct on Schedule E, or can it only be used on Schedule C?

Thank you in advance!

Thanks! I will take your advice and establish a partnership. Do you recommend a limited liability partnership or a limited partnership? We would both be equally involved in all aspects of management/profits.