All Forum Posts by: Matt Sicignano

The first thing you should do is research the tenant/landlord laws in ND and make sure that you were notified within the proper timeframe with whatever the requirement is for deductions for damages. In other words, make sure that you, and he, followed the law for notifications of withholding moneys and disputing the charges. You can also ask the credit reporting bureau to open up a dispute resolution, which will require them to verify the debt. If there is no resolution from that, you could always contact the creditor and try to work out  a settlement. This tme though, get everything in writing.  

That's exactly the "implication" I meant, the sale of it later. Conversion will definitely have tax implications .

 If you have a gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You are eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale.    If he has a large capital gain, he might want to consider this, or at least plan for it!

Don't forget to check with your tax advisor as to the tax implications of the conversion. Depending on the capital gains, you may want to stay within the timeframe for considering it a personal residence.

Have to amend my previous statement a bit. Like mortgage interest, the deductibility is in the year you paid it, not when its due . So maybe, and this is a stretch, the business has a large profit this fiscal year (ending whenever soon) and wants to roll the payment (and their deductions)into their current tax year. Yea, I know, it's a stretch, but it is possible! How about taking a business check, then going to the issuers bank to cash it?

There's no need to put up money in advance to claim a tax write-off or a business expense. In fact, most business's use terms to improve cash flow. So the reason in itself is a little suspicious. The cash offer is too, as well as the fact that he didn't ask for a discount for pre-payment. That being said, I did take 6 months rent in advance at a time from an individual; didn't give a reason; didn't care-met all the other criteria! (In my state, the manner and form of payment has no bearing on legal evictions)

There are some good tips here-I'll try to add something that hasn't been addressed. When reviewing someone "on the line", I try to ask myself whether a larger deposit might mitigate some of the negatives.

I've never understood the phrase "it's always easiest to collect from some one who pays their bills" until I realized I've never had to sue someone like that! Collecting is always 99% of the battle. I've just received a response from the employer of someone I garnished-the person just walked out(quit) when he found out about the garnishment! Another buried the notice for the time of the statutory limit, then quit just when the deadline was up.

Probably not what you want to hear, but I'll answer the questions first, then the advice. What happened to money talks? The housing crash, the bank melt-down and the financial crisis of '08. Buying distressed property for cash, but why should you? Because you have a history of not paying bills and it will be very hard to find someone to risk their lending capital on you. You have cash, but choose to use it for a new purchase, instead of paying old bills-how do you think that looks to any lender? As far as advice, you have answered your own questions; owner financing at a high rate, or a questionable sub-prime loan. Or pay off your bills, work on a time frame to raise your score, and take advantage of the tax benefits and low interest rates to get an FHA loan.

I agree with James. Here is a link to Kansas landlord /tenant rights.

http://www.hcci-ks.org/images/Kansastenantshandbook2007.pdf

It seems to keep a security deposit, there must be an actual loss specified. In other words, it can't be stated "liquidated damages, or " breaking lease" . If you indeed move out by 5/9, and the place is rented 5/10-you could argue that there was no loss to the landlord excepting the 9 days lost rent. If you paid rent through May, you seem to be entitled to a full refund of the deposit, less damages to the property. Expenses such as advertising, showing property, etc. are considered a cost of doing business, and you can't be charged for them.

Thanks-good tip!