All Forum Posts by: Pradeepan V.

Thanks Bill and Dave. My question is what if I rent as well as use it for my personal use?  BOTH and not one vs the other simultaneously( rent one portion and live in another). So my intent is to use for my personal use as well as rent it out. So I do get rental income 365 days but also live there 365 days. 

Dave - I will look for your article. 

Hi

I have a rental property I am planning to sell and use the proceeds to buy a 2nd home( through 1031 exchange). I know 2nd home use for personal use doesnt qualify for 1031 exchange. However my question is what if if I stay there as well as rent it out( like a duplex or mother in law unit for example)- would this qualify for 1031 exchange - This way I get best of both the worlds. Is it possible at all? Anything to be careful about? 

@Basit Siddiqi Thank you so much very helpful. 

Thanks Wayne. Sorry I missed that building vs land part of it. Agreed and aligned.  I will check with my CPA but was wondering how you guys handle it

Hi

I am purchasing a property in NY as an investment property in the name of my LLC for $265k( 1930 construction date). I am putting 20% down and rest as mortgage loan for 30 yrs.

Questions

1. I have a total of $10k in closing costs - I believe as an investment property(in the name of my LLC) I can claim all these amounts and deductible over life of loan i.e 30 yrs so 10,000/30 = $333/year - Is that correct?

2. Are there any closing cost that I can claim full in the current year? 

3. Are there any closing cost that I cannot claim at all?

4. Depreciation- I am planning to do any improvements on this property and will be rented out day 1 of the sale. Can I still claim depreciation on this property? If yes what amounts can I claim over 27.5 yrs - Is it $265k ( i.e the purchase price) or the 20% down? 

Thank you so much Scott. Appreciate all the inputs. Do you know who can help support to form a land trust? and how much does it cost? Also can we have series LLC in one state but have child series in different states?

Hi Scott

I have a LLC in Nevada however my properties are in MO and IL(bought in the Nevada LLC name as well). I dont want to setup foreign entity in MO and IL(which I didnt know I had to do before purchasing the properties if I knew I would have setup and purchased in MO and IL LLC name) rather I want to dissolve my Nevada entity and create a new one in MO and IL. I believe we can do a merger which can automatically dissolve Nevada entity however I dont want to do that either due to costs

Should I just do a quit claim deed and move the title from Nevada LLC to MO and IL LLCs and then pay the necessary fees and dissolve Nevada LLC? Would this be sufficient? Am I missing anything here?

Makes sense.  Well I guess I will borrow some money from you ;)  

And yes absolutely I have self employement “earned income” . Filing taxes on schedule C as well. 

 I guess the problem is lending lot a money. I am looking to lend some amounts( $500/month for example)  and not $50k. So this may   not work for me.  But this is good