All Forum Posts by: Therese V.

Always get background, criminal, credit, eviction reports for everyone 18+ and get them all on the lease when renting. There are people that switch up who will get what ding against them on things and you just wouldn't be seeing the whole picture by missing that additional information.

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3 rented and getting a fourth ready. I use an excel sheet with tabs for each property.

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@Nicholas aiola

we just bought and moved in to a new home. our previous residence we are going to rent out. A few years ago, we bought a new HVAC system and paying off over time. Can we deduct remaining payments from when we turn it to a rental?

If we are not able to find a renter this coming month due to covid issues, can we claim lost rent ?

We had been taking a home office deduction for my ecommerce business. Does turning it to a rental mean we have to pay back any of those deductions?

Anything else I should be aware of in turning our primary residence to a rental?

Thank you!

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Originally posted by @C. Scott Forrest:

Originally posted by @Therese V.:

You aren't getting the $10k forgivable advance?

I applied the day these became available and got a case number, but that was it. I logged in to check the status, and that case number wasn't there.

On the webinar I was in the other day, the SBA person said if you applied early to apply again clicking that box for the advance. You might want to reach out to your contact person to ask if it applies to you. Be nice to get half that forgiven.

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Originally posted by @C. Scott Forrest:

Originally posted by @RJ Schmertz:

Originally posted by @C. Scott Forrest:

Originally posted by @Jim Huang:

Originally posted by @C. Scott Forrest:

FYI - I received my loan document package yesterday for a normal SBA Disaster loan (haven't heard back on the grant application).

Someone asked previously how you indicate how much you would like to borrow. Answer: you don't. They approve you for a certain amount and then you take whatever portion of that amount you need. I believe mine is standard: 3.75%, 30 years, first $100 payment due 12 months from loan date.

Good luck everyone.

Did you receive a phone call from SBA before receiving the loan package? I've been working remotely and it's very inconvenient to check business mail. I hope they call before mailing something out.

Yes, a person was initially assigned to me, called and then emailed to tell me they would try to call again. We spoke several times on the phone (to answer my questions), then she called and gave me all the loan particulars and told me that I would be assigned a case manager and the documents would be mailed to me. She explained everything in detail and was very friendly. The case-worker had an extension, so she's been easy to reach (haven't tried since Friday). I received the documents two days ago.

The paperwork submission has been greatly streamlined because of COVID-19. Once you receive the loan documents, you'll find that there isn't much more that you have to do other than sign things. I didn't have to provide any supporting information - most of what I received was based on what I submitted online. While you still have to sign several things and mail them in to the SBA, to speed things up you also can scan the documents, create PDF files and either email them to the SBA or upload the files on their website (upload didn't work for me).

That's where I currently am. Good luck!

Scott,

How did you apply, as a Sole Proprieter or do you have an entity/s? Do you have employees?

How much work went into determining the amount you were approved for? Are you happy with the amount? Did they talk about how much of an advance you should expect?

The only thing you had to submit was signed documents? No bank documents or tax returns or anything?

I applied as a Sole Proprietor, no employees. I gave the SBA contact my 2019 revenue and she came back and told me $20,000. I am semi-retired, and revenue from a single Airbnb in downtown Seattle provides most of my income. I will lose about $20,000 in revenue March 12 through end of July and rely on the higher Summer revenue to get me through the Winter, so a $20K loan is really perfect. I provided no bank documents or tax documents; however, I signed away permission for the SBA to look at my tax returns. I am getting a loan - no cash or grant or unemployment other than the promised $1,200. But I'm fine - healthy and will make it to retirement - and can't complain.

But I'll admit I'm angry at the government for wiping tears from their eyes over the plight of the self-employed and making promises that they have no intention of keeping. The stimulus is about businesses with employees, as will be Phase 4. The self-employed are not doing anything but keeping themselves and their families provided for, thus useless to our government. Small businesses are not much higher on the pecking order.

You aren't getting the $10k forgivable advance?

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On the SBA call, they stated that you can get both EIDL and PPP just can't use funds for the same expenses.

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Originally posted by @Tony R.:

PPP SBA Corona Covid Disaster Relief

Those of you on this site who have partnered with me, advised, and have become close friendships, I am paying it back now!

I welcome you all to drop me a text or email with any specific questions you have regarding the SBA Loans PPP and those coming next. Answers are from the SBA Lenders, loan processors, & underwriters! I am working with the key logistics & infrastructure group for the SBA Lenders, banks, & others who are behind the scenes assisting in the colossal undertaking of these loans. Get your info from the front lines!

Also, if you want the direct route to avoid the black holes of SBA, government websites, and the bank's all day holds, Im happy to introduce you. Please email or text me. Its free! Just looking to help as my friends and neighbors are all having a very rough time of it with these loans!

Those coming next?

if I have ecommerce business and rentals totally unrelated do I apply twice?

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Did the NH call today. They are no longer going to be taking questions on the calls; it is just an overview of the programs.

They did mention that they will be looking at your credit history and ability to pay back the loan, hobby businesses are excluded, and there are a list of exclusions online of what the money can be used for. I checked out the exclusions and it says you can't take an owner's draw (only what is a reasonable amount for something you are actually doing) so those that have this as income might not get that full amount- probably call to check. It is only for paying bills that are existing and cannot be used for repairs on the property (so if you get a leak I guess you can't use it to pay the plumber).

I'm also seeing conflicting information from various SBA resources online and different employees telling people different things. It is making things very confusing!

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UPDATE for those that wonder:

Well, they went to an accountant to handle their taxes and turns out this person will owe $20k in taxes this year. So, lesson for the rest of us? Take your depreciation!!

The property ended up selling for about $124k and it was held for almost 50 years without taking depreciation.

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We are buying a new home and will be turning our primary residence in to a rental property. I have the following questions, thanks for any help in answering them!

1. We have taken the home office deduction each year, how will this affect turning it to a rental? Or, no affect at all?

2. We bought a new HVAC system that we still owe some money on (0% interest so decided payments were better). Can we start taking the payments as a deduction in any way once this officially is rented?

3. After we officially move to the new home, can all maintenance and any repair all be deducted?

4. Any other things I need to factor in to changing a primary residence to a rental?

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All Forum Posts by: Therese V.

Therese V. has started 61 posts and replied 253 times.

Post: Background check per each adult applicant?

Post: Simple bookkeeping advice

Post: Ask me (a CPA) anything about taxes relating to real estate

Post: Attn: SBA Disaster Loans for Landlords

Post: Attn: SBA Disaster Loans for Landlords

Post: Attn: SBA Disaster Loans for Landlords

Post: Attn: SBA Disaster Loans for Landlords

Post: Attn: SBA Disaster Loans for Landlords

Post: Calculating Capital Gains When No Ordinary Income

Post: Questions about turning a primary residence in to a rental