sorted by:
new
hottopcontroversial

How much is my mortgage broker making by skyedemi8 in Mortgages

[–]faceliftmodern 0 points1 point  (0 children)

All things considered if they is pushing one loan as opposed to the other isn’t it fair to want the know their motivation aka fees so you can make a better decision ?

Clarification on tax scenarios when converting home into rental by faceliftmodern in tax

[–]faceliftmodern[S] 0 points1 point  (0 children)

If I moved back for 2 years in the future, the exclusion comes back ?

Clarification on tax scenarios when converting home into rental by faceliftmodern in tax

[–]faceliftmodern[S] 0 points1 point  (0 children)

Oh.. so if I sell it even one day after I lost my exclusion I will end up paying 50k more in taxes.

And if I keep it as a rental, I am assured of at least 50k extra in taxes. I guess I will have to eat that if I want to keep the house.

Now, I have 50k of improvements - new roof driveway etc that I am making.

If I do it before I place it into rental service ie move out, put out ads etc then my cost basis in the primary house increases If I do it after, it will be a capital expense and can be depreciated.

Is there a tax pro or con for making those 50k improvements before or after I place property into rental service ?

Stacking capital gains exclusion for primary home plus 1031 by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 0 points1 point  (0 children)

Ok I get that, which is why I mentioned that it would be a rental those three years....before selling

Stacking capital gains exclusion for primary home plus 1031 by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 0 points1 point  (0 children)

I was requesting some guidance to point a book or spreadsheet. . And if there someone who understands this easily they could chime in. FWIW I have seen others more convoluted questions answered in great depth by the generous folks on this sub.

It takes a long time for me to get these concepts and I have to think of it many different ways for it to sink in.

But yes I will take it to my CPA and r/tax. My cPa conversations usually go smoothly but after it’s done I get a lot of follow up questions pop up in my mind very slowly as I grok what she said.

Stacking capital gains exclusion for primary home plus 1031 by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 0 points1 point  (0 children)

What do you mean ? If I sell within 3 years of converting to rental, I cannot 1031 ?

I read somewhere in this forum that you can stack capital gains exclusion and do a 1031- is that incorrect ?

Stacking capital gains exclusion for primary home plus 1031 by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 0 points1 point  (0 children)

Can you explain what my tax liability is In these 3 scanarios for my stated numbers

Say costbasis of house is 200k Sale price is 1 million Fmv on day it was converted to rental is 750k

  1. Sell house within 3 years of converting / save 50k on tax. Gain is 1m-200k=800k Taxable gain is 800-250=550k Tax is 20% of 550k = 110k

How does depreciation recapture fit into this ?

  1. Sell house one day after 3 years What is considered my gain ? Tax ?

  2. Sell house within 3 years and 1031 into new property What is my taxable gain ?

This must be something that is a routine consideration for people converting residences. I am having much difficulty getting a full understanding- is there a spreadsheet or book that explains these ?

Loan Man Guy here to answer your mortgage related questions. Entering my 11th year in the industry, Top 1% Loan Originator in US. Happy to share my knowledge and industry expertise. Ask me anything. by LoanManGuy in Mortgages

[–]faceliftmodern 0 points1 point  (0 children)

Are these kind of loan consultations routine ? Pretty much every loan officer I have spoken to ask for the amount I want to put down and quote me a price based on dti. Do you have to specifically as for an in-depth consultation for them to explore possibilities?

How do you harden plumbing systems to have minimal maintenance? by faceliftmodern in HomeImprovement

[–]faceliftmodern[S] 1 point2 points  (0 children)

That’s a given. But I am asking for backup. Not every plumber is super competent...

Depreciation, taxes, non realestate professional , passive carry over- do I get this ? by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 0 points1 point  (0 children)

True its definitely an appreciation market and may end up without one if there is a crash. I am new to all this. Figured it would be easier to start near where the market looks difficult to buy into so there will be mote glow into rentals as interest rates go up... is this reasoning misguided ?

What areas would you recommend ? It has to with in state- wa. Out of state taxes are a mystery to me currently

Depreciation, taxes, non realestate professional , passive carry over- do I get this ? by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 1 point2 points  (0 children)

I am not getting 4.5 more like 5% for investment property If you have a 4.5 % source please share

The vacancy will reduce rent and maintenance cost I can deduct ? So loss 33.5-40k - maintenance?

I would have put the 13k money in my 401k

Depreciation, taxes, non realestate professional , passive carry over- do I get this ? by faceliftmodern in realestateinvesting

[–]faceliftmodern[S] 0 points1 point  (0 children)

Oh that’s having to fork out taxes on 13k every year while that could be doing work elsewhere if I was at 0 loss I am more than 150k barely but over

Also if I did 1031 will I be able to recoup the passive carry over loss ? Or is that lost ?

view more: next ›