All Forum Posts by: Mary Chen

My parents have a fully paid off property they have turned into investment for quite some time. They are looking to do a 1031 some day but thinking it might not happen so quickly so they might just want to rent it back out again. The property is under their name but I'm thinking of moving it to an LLC (they would still be primary owners of LLC)z Any strategies anyone would recommend to do this without creating a taxable event? If anyone knows any lawyers in Hawaii that specialize this, I'm open to referrals.

Trying to find without calling first but will probably call county office to confirm but does anyone know what are the smoke detector and carbon monoxide detector requirements for a home built in the late 70s in all island of Hawaii. Not sure if there are any grandfathered rules or is it similar for all states. 

The property we have has some repair work that needs to be done before we are selling it out as a 1031. What kind of expenses can be claimed back from the sale proceeds? (Eg Travelling cost, cost to repair (labor,  materials). And if not, where should they be deducted? I would think these are considered operational expense but with a 1031 I’m just not sure. Any hints?

Kind of want to see if this is possible or absolutely not (I'm thinking not but just curious what others think). So my parents are doing a 1031 on their old property to buya new one. My brother and I would like to be co-owners to the new property but our contribution to the purchase of the new home is by way of investment loan, so let's say my parent's home sells for 500k and they want to go in on a $1M piece of property. We'll finance the other $500k. So it's 50/25/25. Whatever rent income/expense we receive/incur, is it split the same % as well? Is there a way where there is flexibility to the % allocation of income/expense? I didn't think so but I thought I'd ask. And are there any expenses that go on my itemized deductions?

My parents are planning on selling their investment home (SFR) to buy another home in Hawaii (i.e. 1031). They expect to not qualify on a loan (since income is likely too low) so my siblings and I want to cover it. We are looking multi-family and duplexes so the prices are definitely higher. What's the formula to determining how much money we are able to borrow? Also if we cover the loan, does that mean we are partial owners to the new property? Is % based on how much each party contributes? Any suggestions on types of loans with the least amount of headaches?

My parents are looking to do a 1031 but they can’t qualify for a loan (the older property would only cover 60% of the new property) by themselves anymore so I’d like to do the loan under my name. Because I’m not an owner on the selling property I was told I could potentially borrow the difference as a primary or secondary home loan. It would be rental property to my parents and I would pay a 60% market rental rate and I would also pay the loan. Can it actually be structured that way? Any suggestions on a better way to do this transaction?

@Joe Splitrock @Dave Foster thanks for the insight. Reading more into it. I realize there was no way around the taxes. Appreciate the feedback.

@Dave Foster thanks for the insight. Reading more into it. I realize there was no way around the taxes. Appreciate the feedback.

I’m really trying to help my parents get out of their existing rental property location to find something where I live in California. Then a thought came to mind, is it possible that they could perform a 1031 exchange on my home and I just pay them rental income? Considering homes in California has gone up so much, could I sell it to them below market value? I know this may sound shady but I’m just trying to see if there is a way they can avoid the taxes, still get that supplemental income they need, and still have the cash flow to buy another home if they see one.

@Dave Foster

Can I go into the transaction where my parents treat their portion of the house as rental property and I treat it like I live there as my home?