All Forum Posts by: Glenna Wood

Did you claim the 121 exclusion on the primary home you said you just sold in March? If yes, you can only claim a 121 once every two years so you could no longer reach back to your former primary home/now rental property and do this again until two years pass from your March primary home sale. By then it looks like the 2 of 5 year rule will be hosed.  Also remember you can only 1031 RE being used as an investment at the time of the exchange and into future investment RE. I'm not a pro just an investor with 1031 experience. 

I wouldn't turn away "free" money. Keep your 401k contribution. You say you've begun investing in the stock market. You are likely already in the market with your 401k. Maybe review the investment choices in your 401k plan as carefully as you would stock purchases from your non-retirement $$. When you leave the corporate world, you can roll that 401k into an IRA. I always maxed 401k plans and IRA contributions and my now retired self is thanking my younger self. Best wishes!

I've been with Fidelity since 1982 and have enjoyed and relied on their top notch service ever since.

Thanks for the pictures. As the personal valet to my little flock of pet birds, I love hearing that there are birds who have a job! Mine would be the catchees not the catchers so no work for them.

Not what I've heard... what I've experienced. But perhaps they have improved recently. 

Yes. I used Madison Trust as my custodian and their partner, Broad Financial, set up my checkbook LLC. Good service and reasonable fees from both.

I had poor service from Equity. Left them for a checkbook SDIRA at Madison Trust about 6 years ago. 

Your parents will need to declare and potentially pay taxes on the interest earned on the 2% 30 yr note. The capital gains is spread over the life of that seller financed note. 

Yes.

Not a bad idea at all and a nice thing to offer the seller but I would settle on all the details in writing upfront. I would handle the agreement outside of closing and the sales contract but an attorney may say include it. You are asking them to take a future benefit in lieu of a bigger sales price. While all parties have their hearts in the right place there are many ways this could get complicated. When do they have to define what weeks? You don't want your rental calendar in limbo. Can they "give" their weeks to a 3rd party? What if you book it fully or there is major rehab issue or disaster and you can't give them their weeks or any weeks or you sell before 5 years? Are you or your STR business liable? Who pays for cleaning after their weeks? Are they bound to house rules on #of guests, check in out times, etc? For your record keeping are you giving them 2 free weeks no income gained in lieu of your IRS 14 day free use of your rental window? If you then use it personally, you have to prorate your expenses between personal and business use and this gets tedious. You are offering free use of your future business. You might want to just give them a big discount for x number of years via a post-stay rebate and they follow what ever process you are using for booking like any other guest whether you self manage or use a PM.

I'm just offering an opinion on what I would consider if I were in your shoes and have no experience executing something like this. Best wishes!