All Forum Posts by: Matthew Heffernan

I've been searching for a while here on BP but have not found a thread related to my situation:

I've been renovating and renting a property for just over 2 years and may be in a position to sell/close in the next 30-60 days.

I am trying to cut-off major projects at this time to make a clean break, however we have committed to replacing windows in one of the units (windows are already ordered), with total project lead-time of 45-60 days (windows have been hard to get for the past year).

In the event we have a closing date PRIOR to window installation, how should we handle paying the contractor?

Do we just lower the sale price by equal amount and the contractor will need to take payment from the new owner?  What if the new owner backs out of the job and gives it to their "regular guy", will the original contractor come after me for any expenses/materials spent?

Do we write a check and have the Title company hold it until work is complete? assuming work completes after closing.

In the event of an audit, is it a red flag if we claim an "improvement" after the closing date occurred?   Thinking about capital gains tax implications.

I hope that's enough info.  I appreciate any responses!

@Dave Foster  Yes you nailed it in your summary.

Thanks all for your responses!

I'm trying to help a friend defer capital gains tax in Michigan.

He is selling a business and the real estate to a single buyer, however the property is owned separately under an LLC, which will remain in the Sellers ownership going forward.

Does 1031 exchange limit the exchange to commercial only?  Could a vacation rental property be purchased in exchange for the business/commercial property being sold?

Thank you!

Hey BP, I've been slowly dipping into rental properties and want to make sure I'm optimizing our tax strategy.

I'm looking for a tax strategist, or ideally a CPA that can add value in strategy to ensure I'm getting the lowest possible effective rate.

thank you!

Hi, I am working on my first property and have a conventional loan, which means my current LLC cannot "own" the asset, which I'm assuming eliminates protection the LLC would provide.

I've seen other threads from years ago, from other states, so I'm hoping someone can provide any guidance on whether it's worth it to continue using the LLC or dump it and keep it all "personal". I'm also gathering that there aren't really any tax benefits with me using the LLC vs. personal financial reporting either.

Is my only benefit to the LLC the ability to make polo shirts with cool logos?? =)

Thank you!

Thank you! Yes that’s helpful!

I am trying to find a CPA locally that is real estate knowledgeable but to no avail, I guess I could always reach farther toward Indianapolis and find options.

Take care!

Hey all!  I’ve finally pulled the trigger and now a few weeks from closing on a 2 unit in my “back yard”.

While I've read about many tax / write off advantages to investment properties, I wasn't planning on getting an LLC until my second property maybe next year.

My wife is an agent.

We plan to pour 15k in rehab right away.

I'm looking for any advantages/write offs that I could take advantage of (or my wife as an agent) without getting an LLC.

Thanks!

Thank you @Bryan Vukelich , based on your feedback (and other input I've recently uncovered) it looks like we can check off this variable in order to get an offer made.