All Forum Posts by: Marie Z.

Dave,

Thank you for the heads up. As I stated, there's a lot I don't know about doing a 1031 exchange. Husband and I are looking to start liquidating real estate assets since we're getting older and don't want to leave our kids with having to dispose of real estate when we're gone. Our plan is to sell our 2 Texas rentals to buy the home we will eventually live in via a 1031 exchange and take advantage of the 2 out of 5 year tax rule to convert our rental into our primary residence. I'm not quite sure how that works but hope to learn more.

Thank you for your prompt reply and for all your help to others on BP.

Hi Nicholas,

Thank you for making yourself available for questions. My husband & I are wanting to gift our daughter and her husband $25,000. to put down on a house. I'm concerned with the tax implications for both them and us. How would you recommend we gift them the money to avoid any tax problems?

Great information on this thread. I'm just starting the process of listing my two single family homes in New Braunfels, Tx to do a 1031 exchange and buy in Calif. I've done a bit of research. What Soh Tanaka says is correct, but there's a lot more to it than that. A 1031 allows you to move from one rental investment to another without having to take the tax hit on the equity you've built up. I believe it has to be done through a qualified intermediary and as they said, you have to identify 3 properties within 45 and completely close in 180 days. Why do 1031? If you sell your rental and don't do it as a 1031 exchange.....you have to recapture all the depreciation deduction that you deducted during the time you listed your rental on your taxes. That can be a hefty amount. Paying capital gain can be painful when you've worked so hard to build wealth. If anyone can give any advise regarding 1031 exchange, it would be greatly appreciated. Also any recommendations on a Qualified Intermediary in California? 

Nathan: I was very interested on what you said in your reply regarding pet restrictions & fees. I'm curious to know how you word your lease agreement regarding the additional monthly pet fee increase. Please share this info with us. Currently working on a lease in a small condo, tenants have a large german shepherd.

"I charge $50 per month per pet. Large pets (over 75 pounds) are $100 per month. I do not list this as pet rent. I increase the rent by that amount so that it is one charge each month. For example, the normal rent is $1,000 a month but I increase it to $1,100 because they have a large Black Lab. NOTE: I do not put anything in writing that says rent is increasing because of the pet. I don't want the tenant to come back six months later and tell me they removed the pet or traded it for a Chihuahua and then ask for a rent decrease. I may adjust it at renewal time but not during the lease."

There's a lot to think about when it comes to selling a rental. I've enjoyed the thread and the insights. We too are in the process of selling our single family in Cedar Park, Tx. It's been a roller coaster. We have a buyer. I'm not sure that the buyer is experienced due to his unreasonable demands. Or maybe he's getting cold feet and trying to find a way out. What ever the case. When we listed our house there were numerous homes available, now it seems inventory has thinned out. I believe that maybe now is a good time to sell, before the market takes another turn. If the buyer changes his mind, we'll put it back on the market, and might have better results. We'll see.

In the meantime, I did want to mention to Ben H. to take into account the recapture of depreciation upon the sale of his rental. Without doing a 1031 exchange he may be in for a surprise on his tax liability and capital gains. Just something else to think about. Good luck.

We're new to SDIRA. What is a 990-T form? Don't you only file this once you start taking distributions from the IRA?

Regarding SDIRA, We decided to go with
Equity Trust. We're currently working on our first deal with them. Which is a 25,000.00 promissory note loan.
They have been available & willing to answer questions. I've called them quite a bit before we rolled our IRA over with them. If all goes well, we"re thinking of doing some hard cash loans.

Terry,
I tried the link several times & it didn't work. Please advise.