All Forum Posts by: Tobias Joneses

Hello, 

 I have a question. Say I have a net loss of 20k.  4 properties each have 5k loss.  The allowed loss for each is 3k and unallowed is 2k.  for next year am I allowed to carry over the net loss 20k? or just the unallowed loss(2k for each property).  Since no property had any gain that allowed loss of 3k per property is lost? I could not find an answer to this online and irs rules. It looks like I would carry over the entire loss regardless if it were allowed or unallowed because the allowed losses could not be used to offset any gain.

thanks!

@Grant Schroeder @Dave Foster you touched upon pocket listings. I never understood why someone who is selling would want to do a pocket listing especially in this market where you can get a lot of offers? if you're doing a pocket listing in my eyes, you are limiting yourself to just one offer, whereas if you put it on the MLS you could get competing offers and more exposure?

I see it as a way for agents to drum up business giving themselves the idea that you will get a great deal because only we have these secret listings... 

Thank you for giving me a substance reply and not something like "you should consult a professional" :) 

You make some very good points. The only piece that i'm very hesitant about is getting in contract before selling the investment property.  It would be great for me, but in Southern California, people are bidding 10-20% over list with a 17 day close and only an inspection contingency. I don't think they would be willing to take the contingency of selling the investment property first but its worth a shot before I say anything concretely.  

I am thinking of waiting because selling high, and buying high == higher property taxes, but lower interest rates, which doesn't really entice me since the loan will be so low. 

 Very very good points and this was a valuable post. Thank you for that.  I'll probably wait to see when more properties come on the market, I'm not down with over bidding so much that it makes the investment cash flow less than what I currently have.  It's scary for residential buyers  who have to compete with 1031 investors on properties out there.   Will be in touch to pick your brain on other things :) 

as anyone done a 1031 exchange this year? curious on your experience with the hot market. I'm thinking of selling a condo near LA but am concerned on if I'll find a replacement property within 45 days. I'll make a lot of profit for sure, but it will be a zero sum game when it's time to buy. Unless you buy outside of the state which I'm not prepared to do. Thoughts on this?

Has anyone done a 1031 exchange this year? curious on your experience with the hot market. I'm thinking of selling a condo near LA but am concerned on if I'll find a replacement property within 45 days.  I'll make a lot of profit for sure, but it will be a zero sum game when it's time to buy. Unless you buy outside of the state which I'm not prepared to do.  Thoughts on this? 

you could get them to sign the 12 year lease and if they decide not to you would do a no fault eviction because they arent' signing to the terms. You can set the new rental amount to whatever you want.  I would keep it month to month so it's flexible.  Good luck, hopefully this tenant is good. 

Can someone explain why there are three different dates and the different moratoriums? How do landlords follow these different dates? Federal moratoriums extended to end of march, California has to vote on if it's going to expire feb 1 or extend, and then there is Los Angeles which already has extended it to february 28,2021.. So as a landlord do I only care about the LA county eviction moratorium?  

To get even more confusing I noticed that the eviction moratorium only applies to people who make a certain amount, ie: couples who make less than 198k.  Does that 198k mean wages reported to the federal govt? Adjusted Gross Income?  There is very very little information on the details here that i've spent the last week researching. There is TONS of repeated information about not having to pay rent if you have a covid related crisis, and it can be self certified.. what is self certified? 

Really interested to hearing about how local LA people are dealing with this.  I wanted to do a no fault eviction on a tenant so a family member can move in after their lease is up, but it seems impossible at this point because of this eviction moratorium. The tenants make about 230k per year before taxes and have not missed a payment. Normally this would be no problem but the eviction moratorium includes no fault evictions.  California definitely is on the decline for landlords. I highly discourage anyone looking to invest into real estate in california because the laws are strictly to protect the tenant and unless you are flipping, renting it for cash flow is horrible. 

Open to discussions here.  I suppose if you get a great tenant , there are no problems but also great tenants turn into home owners rather quickly, so you'll have constant turnover and constant screenings for the next young and up and coming good tenant soon to be home owner. I guess if you have that kind of patience then I can see why renting for cash flow is good, otherwise good tenants to me == soon to be home owners. 

@Oscar Montealegre  how are you doing with the moratorium right now? It's literally insane on the renters protections. If i'm reading the laws correctly, a person who signed a lease can now stay here until the ban is lifted. They can now have a pet, or extra people in the house(to a safe extent), and cause nuisances and still not get evicted. Until they start to damage the property or do things deemed unsafe.  

I guess the writing was on the wall when even squatters who had no claim to the property have housing rights. I am seriously looking to offload some properties this year.  The sad part is that renters are really going to be the ones who are going to be in trouble. Rentals will be 1 of 2 things. 1. sold to peopel who want to live in it thus decreasing rental supply. or 2. corporations will buy the properties and raise the rents. 

I see this moratorium ban as kicking the can down the road. The forebearance only means that we won't have to pay mortgage, but you're still on the hook for the maintenance, taxes, insurance and upkeep. 

I think the moratorium will last until 2022, when we can have the vaccines.  Then businesses will open up and people can make a living again. Until then, there will just be an unfair squeeze on landlords. I know I will be raising my rent every year to cover against things like this in the future. 

Yes you are correct. And to anyone who has the same question. I consulted an attorney and this is totally fine, won't trigger anything. 

Please do not post "you should seek a tax professional"  I will do this but wanted to know if anyone here knew anything besides "You should seek a tax professional"  

Now that we got that out of the way, I want to know if the property is in my name can I move this into a trust without triggering a sale or depreciation recapture?  From my understanding, I'd have to first have to move the property into the trusts name as an owner using a quit claim deed. (https://homeguides.sfgate.com/...)  Unfortunately at this point the government would see this as a sale and it would trigger depreciation recapture.  Is this true?  Or does anyone know of a way around this?   Selling at a loss is not an option. I am trying to avoid probate. 

Thank you in advance for all your useful answers!