All Forum Posts by: Victor Yang

Hello,

If I gift a house, what amount will go towards the lifetime gift limit, the amount i purchased the house for, or the current FMV?

It is my understanding that the new owner will have the house at the cost basis of my purchase price, for calculating capital gains taxes or depreciation.

In addition, is it possible for me and my wife to gift 36k worth of equity per year of the house (under the annual exclusion limit) and therefore have none of the costs go towards the lifetime gift limit?

Thanks

Hello all,

I am looking to buy an apartment building. Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).

I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive. I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this. Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.

My questions are:

Is this too naively optimistic?

Obviously there are risks if I get laid off and would loose all the tax savings and be paying out of pocket for the property, but are there other things that I should consider?

Thanks all

[NORTH CAROLINA] 

Hello,

Is there a way i can create a lease for just the land, but not the house, or have a NNN residential equivalent?

Context, i bought a house at a foreclosure auction. I mainly bought it for the land, do not intend to rent it out for cash flow or what not.

It is currently occupied by the previous owner. Instead of evicting them, i was thinking is there some way that I could rent it back to him for very cheap (mainly to cover just the taxes/ insurance) ie 2k a year rather than the going rate of 2k a month for similar properties. However, i dont want him to be able to sue me for "the water heater isnt working" "the ac isnt working etc..."

Also I dont know the state of the house ie is it completely derelict and trashed or what not, as previously stated i dont care about the house, just the land. In all likely hood, in 5-10-20 years the house will be bulldozed completely. 

I think this arrangement can suit both parties, he wasnt going to be able to keep the house but can still live there for super cheap. Alternative is the sherif evicts him and I pay tax and insurance.

I know we can have a gentleman's agreement on these things, but im still afraid he might be able to legally sue me if we have a legitimate residential lease? I was thinking about something like an Estate At Will lease?

Thank you all