All Forum Posts by: Piku Nanda

Hi All,

Can anyone shed light on the impact of the latest Tax law changes/reform on rental property owners, if any?

Thanks,

Piku

Thanks, everyone. I greatly appreciate your inputs. 

FYI , said property is in GA and I believe it is illegal to smoke marijuana here.

I will make sure to check out everything else before I rent to them.

Thank you very much

Hi All,

I have been a landlord for 2 years now. I use Transunion smartmove to screen my tenants.

I am currently reviewing an application of a tenant who has 1 criminal record . This person was found in possession on 1 ounce of marijuana 6 years ago. They were put on probation at that time . When the potential tenant first met me , they were upfront and mentioned that they were arrested for marijuana 10 yrs ago (which I now found out was 6 yrs ago , but still far enough in the past) . Other than this, the rest of the results are decent (no negatives on credit even though they have only 4 credit accounts , no evictions). 

Also, when I met this person, they seemed to be a high energy individual (I am quite laid back so cant really tell if this was just a regular happy person or a person high on drugs).

I am a pretty boring kind of person and have never had anything to do with marijuana. I am in a dilemma whether on not to rent to this person. If I rent to them and they end up using marijuana, what sort of damage can they do to my property ? How big of a deal is a one time marijuana related arrest ? Is there anything I can do to minimize my risk and still rent to them?

Please share your thoughts.

Thanks

@Ashish Acharya, Thank you very much. My logic for wanting to set it up this way is :

1) I am putting all my life savings into this gig (300k plus CASH savings)

2) The business profits will be taxed, so I will be paying quite a bit of tax and it will be hard for me get my initial investment back quickly.

However, if I loan my $ to the business at a nominal rate , I can get my initial investment back in the first few years - This will reduce business tax as the loan will be an expense/liability for business and the 300K plus principal returned to my savings will not be taxed on my personal business income. The minor interest that I will receive as income will rightfully be taxed as income. However, my initial saving that I have already paid tax on will come back to my account and I will not incur any additional tax.

Can you please review and tell me if my understanding is NOT correct. I am new to business and want to do stuff right so I don't regret it later.

If you are open to this, I will greatly appreciate speaking with you over the phone. 

Thanks much,Piku

Hello All,

I am starting out a retail business with my life's savings (around 300k). Since this business does not have any property or equipment, I cannot get a business loan (and hence using my savings). I wish to show this initial investment as a LOAN to the business which I will get back over X years with X.X interest. I understand that if I do so then the interest income will be taxable BUT my principal will be returned to me without tax penalty.

My questions:

1) Is my above understanding correct?

2) Who/What will I need to pull the above off as I start my business (does a CPA help with this ? Business attorney ? Or Do I just have to do something at my end )

If anyone has any experience with this situation, please share your insights.

Thank you,

Piku