All Forum Posts by: Rusty Scott

Hi Reed, 

I've been in the Indy market for 16 years and counting now. If you need any advice or assistance,  feel free to reach out.

I mainly do my own thing,  but have worked with a number of BP members over the years. 

I would say 90% of the offers we put in get that response. A few years ago I thought it was mostly BS....now it seems true....as many places end up going above list.

Probably the change closest to the hearts of folks here... limits on the tax free gains of your personal residence is being introduced.

Currently you can sell your home, and pocket the gains (up to $250k/500k) every 2 years. This would change it to every 5 years. 

ok thanks for the info.

Seems then the best option for agents buying for themselves would be to forego the commission and instead ask for a price reduction. 

That doesn't really matchup with what the IRS says regarding commission rebates.

Even if I have the commission on a 1099....if I rebated that commission to a client I know I can deduct that rebate as an expense. But the question is, is it deductible if I'm rebating it to myself? 

For those licensed agents out there....when you buy a property for yourself, either personal residence or investment property, you typically receive the buyers agent commission.

Is this considered taxable income? Or is it considered a price reduction, lowering your cost basis in the property?

I know that if you rebate your commission to a client....it is not considered taxable income for the client....but rather a lower purchase price in the eyes of the IRS.

But what if you are your own client?..common sense tells me it would be the same thing, but can't find any concrete info on this. 

Hi Seetha,

Zip codes aren't a great way to view the Indy market. The same zip code can have MASSIVE variances in values/demand. 

Homes in B areas or better rent very quickly. 

That is a very wide area you are talking about, but most of what you are seeing is Mapleton Fall Creek, I assume. It's an area trending in the right direction, but still a ways to go. 

My question to you, being your first rental, why are you set on a duplex? I generally advise against them here in Indy, outside of a few higher priced/higher demand locations. You'll find the tenant pool to be quite challenging.

I'd be happy to share some stories with you!

Thanks Gabe, I appreciate the kind words.

I've seen a lot of scam listings on Zillow here in Indy in the last year. FSBOs for 50% of market value. I assume it's an ongoing problem on Zillow