All Forum Posts by: Shelton Eubanks

I’m looking for some advise on what is the best commercial use of a 4acre tract inside the city of San Marcos Texas. I’m going thru zoning and trying to determine what to build. I’m willing to pay for some experienced advice.

I was talking to a friend of mine and he mentioned that he is refinancing his deals just before he sells them to elevate his cost basis. For example

  actual money spent/cost basis                     $100,000

  appraised Value                                              $200,000

  Refi                                                                    $170,000

  Sale price                                                         $200,000

  the sale shows a taxable profit of               $30,000

  actual money spent taxable profit is         $100,000

  so by elevating the cost basis through the refi they have dropped their taxable income by $70,000 and put $70,000 in non taxable income in their pocket (non taxable since it is borrowed in the refi). still made the same amount of money but got to keep more buy showing a lower taxable income.

I can see how the refi with cash out is legal and I see how at closing the loan gets paid and it shows a smaller taxable profit. My question is that if used in combination with each other is this legal? It appears that its just a way to artificially inflate the cost basis to lower the tax burden. They swear that the CPA they use supports this as legal and that they have been doing it for years. If this is legal it's a really great strategy.

Any tax people in here that can weigh in?   

I have a 5 bedroom 3 bath fully remodeled house coming up in the few months if anyone is interested. Its has great lake views and HOA rules do not limit STR.

I am flipping a house in Canyon Lake Texas and am targeting Airbnb investors as the end buyer. Can anyone tell me how an Airbnb investor analyzes deals so I have the best chance for finding a buyer. I understand the concept but not sure how they evaluate the deal so I can get the most out of my property. Any advice would really be appreciated. Thanks!