All Forum Posts by: Basit Siddiqi

I think you can make the argument to take out a 401K and pay income tax + penalty if you have a high interest rate credit card.
However, I wouldn't take out the distribution to pay a mortgage.

Depreciable basis will be purchase price + renovations

Gain from a passive activity can be offset with a passive loss.

I am not an investor but I remember hearing his name a few years ago on multiple real estate related podcasts and the hosts always mentioning how intelligent he is and how much information he has.

I guess not...

I am sorry to hear everything that is invested.

It is generally not advised to hold appreciating property such as real estate inside of an S-Corporation.

Taking the properties out will be considered a taxable event.

When you bake in buying out the partner, factor that since they are not selling the property, that they are not paying approx 6% to 10% of the sales price which should be in your advantage regarding your offer.

Best of luck

The issue you have is that it doesn't appear that you have an investment property if you are letting a family use it rent free.

A 1031 exchange requires the property that you are selling to be an investment property.

best of luck.

If you are converting a personal residence into an investment property, you want to make sure that you calculate the basis correctly.
You want to factor in all the improvements that you made to the house from the time of purchase.

Also, if you are an agent, you might potentially be able to claim real estate professional status.

Best of luck to you!

You mention having a business partner, if there is an entity involved, there may be a requirement to file a business tax return.

Most business tax returns are due March 15 with an opportunity to extend the tax filing.

I also saw your profile that you have a property in Ohio. Congrats on the purchase!
Something to be mindful of is that Ohio requires multiple tax returns to be filed - One at the state level and another depending on the city where the property is located.

You mention "we" a couple of times, who are they?

Are they you and a spouse or you and a business partner?

If you are new to real estate investing you may benefit with working with a CPA who can help you understand the tax laws unique to real estate investors and to give you an idea of what is deductible / non-deductible.