All Forum Posts by: Richard Boyd

@Dennis M. What do you mean? I read that daycare owners are more susceptible to being audited because parents might lie on their taxes. granted it's only 2% chance.  Plus She legally has to be registered with the state. 

Guys, I'm an idiot. Self-employment tax is 15.3%

I'm not sure why my accountant said to charge rent to pay a lower tax. 

Any chance you can offer any clarity? I'll also follow up once I ask the accountant and tell you what they say. 

Hi guys!

So I have a duplex (commercial zoning) only in my name. My wife runs an in-home daycare (dba) out of one side and we live in the other side. My question is... We would like to avoid paying the 25% self-employment fee other than the write offs that she can use from her expenses. As the home owner, can I charge her rent for any amount? Basically I would charge her rent for anything extra she makes that can't be written off. Also, does that apply even if I decide to work with her so that we can have more kids. I know this is more of a tax question than it is Real Estate but I'm not sure who else to ask. The accountant we use is not knowledgeable with small businesses.  

Hi,

There’s a lady in Neenah, Wisconsin by the name of Tanya who is looking for a home that she can get owner financing for. She’s currently renting a place and running a daycare and her landlord is getting foreclosed on. Are there any agents that are good with creative financing in that area? Either that or she wants to rent.

Did you ever find anyone local?

I have recently came across the following situation and was wondering if anyone had an input:

A friend of mine owns a property that is being bought by a gas station chain. It's selling for about 900,000. My friend wants to reinvest this money into a mobile home subdivision for 1.3 million using the 10-31 (his words). However, this property he wants belongs to his father. His CPA said its not possible to avoid the taxes because they are related. the state is Minnesota, not sure if that matters.

1. Is the CPA right?

2. If so, is there another loophole to avoid paying a hefty $200,000?

@Nicholas Aiola

Hi Nicholas, 

I have recently came across the following situation and was wondering if you had an input:

A friend of mine owns a property that is being bought by a gas station chain. It's selling for about 900,000. My friend wants to reinvest this money into a mobile home subdivision for 1.3 million using the 10-31 (his words). However, this property he wants belongs to his father. His CPA said its not possible to avoid the taxes because they are related. the state is Minnesota, not sure if that matters. 

1. Is the CPA right?

2. If so, is there another loophole to avoid paying a hefty $200,000? 

Hey guys,

Situation:

I can't get a conventional loan and I'm out of money for a down payment. I want a duplex and owners are willing to take on financing with 25k down. The numbers make sense.

What's the best outcome you see and what are my different possibilities for financing?

My resources are free time and motivation.

Hey guys,

Situation:

I can't get a conventional loan and I'm out of money for a down payment. I want a duplex and owners are willing to take on financing with 25k down. The numbers make sense.

What's the best outcome you see and what are my different possibilities for financing?

My resources are free time and motivation.

Real estate is the most interesting thing I've ever learned about; however, I recently started my business as a bird dog and something hit me; like a wall. I got the LLC set up and before getting my first letter out, I just stopped everything. I'm not sure if it's fear or lost interest. I know this is where a lot of people give up and I don't want to be that statistic, even if I fail.

How do you stay interested in Real Estate Investing for the long term?