All Forum Posts by: Steph C.

Great, thanks!

So, you don't have to send a 1099 to a S Corp or C Corp. Thank you, J Scott, that helps clarify.

If a company is incorporated (Joe's Windows, Inc.) and is classified as a Domestic Profit Corporation, I assume that also means they would not need to be sent a 1099?

Steven, thanks for the feedback. I have heard others say the same, they send 1099s to anyone that they do business with.

Thanks again,
Steph

I know this a common topic of discussion, but thought I'd ask another question as it relates to rehabs (we GC our own rehabs).

I know you need to send a 1099 to any "independent" contractor to which you pay $600 or more in a calendar year.

Where is gets fuzzy and where I've received varying opinions is if you pay a corporation, LLC, etc. Do you send them a 1099?

Say you have Window World (or even Joe's Windows, LLC) install $4k of replacement windows. Do you send them a 1099?

Thanks,
Steph

Brian,

Title V is quite a big deal here in MA.

About 13 years ago, we replaced the septic in a small 2 bed/1 bath house for $8k. However, I know someone who replaced a 3 bed/1 bath house system recently for $25k. I have heard the going rate ranges from $20 to 35k, depending on size and type of home.

If you are unable to get a house on city sewer, for any homes with septic, you should consider lowering your offer and assume you will have to install a new septic. (I swear every house we look at always has a "failed" Title V.) And if you don't have to install a new septic, even better, you saved yourself a ton of money on the house.

Good luck!
Steph

Hello,

We are closing on a rehab soon here in MA. I've received conflicting info about the energy tax credits available.

We will be making some upgrades which will quality for a tax credit - such as new windows and heating upgrades.

Can you take these tax credits when you rehab (holding property in your LLC while rehabbing)?

Can you pass these tax credits along to an end buyer? Or, would the buyers not qualify since they didn't purchase/do these upgrades themselves?

Thanks,
Steph

Thanks, Bob.

Thanks, Bob. The property went under agreement with another buyer today! :-( We offered and countered but didn't want to pay enough, I guess.

The house is a 3 family and the cash flow was excellent ($800/positive a month) and getting this one would have been great. It needed no work and was de-leaded, so the asking price was high, but well worth it. Oh well, onto the next one. We are looking at houses in the Attleboro/Seekonk/Mansfield areas (Bristol/Norfolk Counties).

Financing has been the sticking point with us. I guess we need to keep trying. I wouldn't mind buying with hard money and refinancing later, that'd work just fine, so we could get the cash we put down back, since the lenders want large downpayments.

Steph

Thanks, Craig!

Thanks, Craig!

Thanks, Celine. I appreciate the advice!