All Forum Posts by: Syed Quadri

Hello all,

My wife and I own an Airbnb rental in Chicago, IL, and live in Sacramento, CA.  I'm looking for the best way to handle the taxes and take the most advantageous approach for the future. I have a ton of questions but let me just start with the most important ones. 

1. Should I create an LLC to run the Airbnb rental business? We still have a mortgage on the property.
2. How do the taxes work for this? We put money out of our pocket to run Airbnb, like buying furniture, landscaping, repairs, etc. Can I take these as deductions from my taxes since this money is invested in starting a business, or would it count as a personal expense and can't be written off? For example, if my gross household income is $100K/year and we invested $10k in starting Airbnb, can we take this deduction from our personal taxes?

Thank you

Any luck with your situation? Were you able to resolve it? 

Okay, so we ended up closing in right on time.  Our lender and Escrow company expedited as much as possible and made it happen. We were able to meet the notary at 7 am on Friday March 18th to complete the signing and once the documents were received by Escrow company and also verified by our lender around 9 am. Our lender funded the loan and the Escrow company was able to do their due diligence and complete the closing the same day.  

I also learned the reason we couldn't close the same is because in California the County clerk has to stamp the transfer of ownership which usually happens the following business day.  Since we signed the documents early in the morning there was enough time to get the closing completed the same day.  

Thank you all for your response. 

We put an offer on 2/19/2022 and it was accepted on 2/21/2022. Our contingencies were 12 days for loan, 12 days for appraisal, 7 days for inspections. The agent advised us this is the best way to get the offer accepted and we can always go back and negotiate the timeline once we are in contract. Inspections were completed before time and appraisal came back on the due date March 7th. Soon after the appraisal, our lender sent the documents for underwriting. We did not sign any extension or removal of loan or appraisal contingency, our agent did not provide that. Underwriting came back March 15th which is a day later than our initial scheduled closing date March 14th. We are set to sign the closing documents on March 18th which is Friday and that puts the closing to complete on Monday March 21st. Sellers sent us a demand to close on March 15th and gave us the deadline to complete the closing on March 18th. Our lender advised us that is not possible due to 3 day waiting period after we sign the closing disclosure and we cannot close on the same day in California after we sign the final documents for closing. Sellers would like to pull back out of this deal due to delays and our agents tells us that they have a better offer on the table and would like to go with. 

Note - This is a dual agent. We put an offer through the listing agent to get the house.  

My questions are:

1. Is there anything we can do legally?

2. If they do decide to pull back, what happens to the earnest money?  Do we forfeit since we are passed the deadline? 

3. Any other solutions ?

Thank you,