All Forum Posts by: Mike Roterdam

Dear All

I would appreciate your valuable response...

Thank you

Dear All

How does one use the Bigger Pockets Rental Property Calculator when converting a primary residence to rental? From what I can gather it assumes the purchase of a rental property from day #1. How should the fields be filled out when the property has been lived in for a period of time as a primary residence, and then converted to a rental property?

If this calculator is not setup to handle the conversion situation, I would appreciate references to other calculators/spreadsheets that can.

Thank you

Hello Brett,

thank you for your reply. We held the property as a rental from April 2010 to November 2013, at which time we transferred it into our LLC, owned solely by us (a disregarded entity). We sold it under the LLC (April 2016). Speaking to a business and real estate tax expert is a good idea. But prior to doing such, I would like to see examples that match my situation as close as possible.

Regards,

Mike Roterdam

Dear BiggerPockets Colleagues,

My wife and I purchased a primary residence in April 2005 for $335,000. We lived in it until April 2010, at which time we converted it to a rental property.  Fair Market Value at time of conversion was $300,000.  We used this value coupled with the county building/land ratio to determine the building (non-land) value for deprecation purposes over the years. It stayed a rental property until we sold it in April 2016 for $299,900.

I am seeking sample figures of a  sale of rental property, particularly when it was first a primary residence converted to rental/investment. There were closing costs at the time of purchase and the time of sale. From 2007 to 2010 part of the home was used as a business home office. I am also aware of the large recapture tax burden due.

Anything you can do to point me in the right direction will be greatly appreciated.

Thank you

Mike Roterdam

To All,

my wife and I and partners (daughter and son-in-law) purchased a condominium investment property on December 31, 2015.

Some questions:

(1) Are there any real tax advantages to closing on the last day of the year?  Main expenses would include closing costs (loan origination and fees, and title fees).  Obviously there would not be much in 1 day of real-estate taxes, mortgage interest and depreciation.

(2) Our partnership is 50-50.  We agree to share all income and expenses down the middle. However, no "official" partnership has been formed (yet).  Is my understanding correct that each of our share of income and expenses should be reported on our own Schedule E forms?

As usual, I look forward to your feedback and a lively discussion.

Best Regards,

Mike Roterdam

Dion, Bill and Steven,

sorry it has taken me so long to say "thank you" for your replies and sharing of knowledge. To answer some of your questions:

My wife and I own the investment property. We used a quit-claim deed. I agree that notifying my tenants of the transfer to our newly formed LLC, assuring them everything in the existing lease is still in effect, and for rent payments to be made to the LLC should be sufficient.

Best Regards,

Mike Roterdam

To All,

I have an investment residential property that I have been renting out for the past few years. Just recently I formed an LLC and transferred the property to it. My next step is to "assign" the existing lease agreement (that I have in place with the current tenants) to the LLC. Does anybody know of a good document, form or verbiage for this kind of assignment.

Much thanks in advance

Mike Roterdam
Minnesota