All Forum Posts by: Cameron Price

@Eamonn McElroy, I've never heard of Preambles to Treasury Regulations. So they basically have to explain their logic? If/ when you read them, you normally think it makes sense?

@Nicholas Aiola, that was a very helpful response. Thank you. 80K Pages is insane! 

You said the tax code is fair if you know how to use it. That's a lot of what I wanted to know. 

I had to pay depreciation recapture taxes yesterday. That's one of those things that blows my mind. Why did you give me a deduction if you are going to make me pay it back? To use that as an example, If you had to pay depreciation recapture taxes, knowing what you know, you would feel ok about it? From my ignorant perspective, I didn't really get the deduction I thought I did, If I have to pay some of it back. There has to be some logic that makes sense there, but I don't get it. You do, and are good with it? I know my feelings don't mean anything, but I'm fascinated by this.

Eamonn, as an accountant, do you understand the seemingly arbitrary numbers and exception, etc, or do you just accept them as the rules you have to play by?

Good question! I don't know. I don't understand what's happening. lol!  Do you not feel completely lost in all this?

As a Real Estate Agent, who is a good at my craft, I understand the contracts very well. I work a deal and have confidence in what I'm doing. I know a lot of my clients are completely lost when they start and have only a basic understanding during the process. (I educate them as much as they want and end up spending a ton of time with some of them) They rely on my understanding and confidence. I can't say that I completely understand every clause in a real estate contract, but there's nothing in there that I just take on blind faith. I get it. And overall, I think the contracts are fair. Before I had this level of understanding, I would have the same questions about a Real Estate Transaction. Why are these clauses in there? Why only this many days? Who does this protect or benefit? At this point, I look at the transaction overall, and can step back and say, "yep, I get it." This is pretty fair overall. I do X and Y to tip the scales in my clients favor, etc. That's what I wonder about the whole tax system. Do people actually "get it"? And if they do, I wonder if they step back and say, "yep, that's pretty good overall", or if they think, "man, these rules are terrible and it is what it is?"

I just filed my taxes for 2018, and had to pay in a significant amount of money. This got me exploring some of the details of my situation and  trying to figure out some of the math and the logic for certain things. I do have a CPA who helps me, but I'm a a Real Estate Broker and Investor with a background in Engineering, so I'm constantly trying to learn as much as possible and grasp everything I can with a solid understanding. 

My question is for those who have a DEEP understanding of the tax code.  I see all these seemingly arbitrary numbers and limitations and exceptions, and I wonder where they come from. I know that's way too deep of a topic to answer quickly, but If you really understand what they are trying to accomplish, do you think it's fair overall? Or do you think most of these rules are made to benefit a particular group that lobbied well? Things like deprecation deductions only being able to offset ordinary income up to a certain limit, unless you are actively engaged in real estate (something along those lines), Or biodiesel credits, but only if you do this, but not that.  Don't get hung up in the specific examples, because I'm ignorant when it comes to the tax code (that's why I pay my CPA) but I'm genuinely curious if people actually understands these things, or they just know the rules and follow. 

It's like there's a huge system of "if this, then that"  someone somewhere had to program into Excel and someone had to understand the logic completely to program it (write the tax code). I'm sure it has been many people over time, but you get the analogy. I wonder if some of you on here feel you have a good grasp on the logic, and if you do, do you think it's fair overall? Do you understand the caps and the exceptions? I know that's a loaded question, but i think it would be a worthwhile discussion.

@Alma Gomez If you find a really good agent, they'll likely have a good team (Lender, Attorney, Inspectors) 

Finding a good agent is tricky. Talk to lots of people who recently purchased property similar to what you are looking for. You can look at online reviews, but that doesn't always tell the whole story. Most of the agent with lots of reviews are good at getting reviews. Lol! it's not something I really care about, so I don't pursue it. Word of mouth and my little bit of advertising gets me all the business I can stand.

Also, make sure your interests are aligned like Sunny said. Don't expect an agent to work themselves to death for little pay (or no pay!) That doesn't work very well long term. Good help is worth paying for.

I hope you find someone good. A good agent is an invaluable team member!

That would be really complicated in my opinion. 

I wouldn't' advise my seller to accept such an offer unless they were desperate!

If you could somehow convince 2 separate sellers to accept an offer that ties them to each other, now there are 2 home inspections, 2 termite reports, 2 sets of title work, and a whole bunch of other extremely complicated issues. 

It's tough enough to get to closing on 1 property with all the variables that exist. 2 would be wild. Not saying it's impossible, though. I just closed 2 properties last week where one was contingent upon the other, and I represented 3 of the "sides". That's 2 deals that had to work out for either one to work. We made it happen. But that's a different scenario. 

Something else to consider. Coldwell Banker is a large company. There's one in my town. Doesn't really mean much that they are both represented by Coldwell Banker. If it's the same Agent or the same Broker supervising both Listing Agents, you MIGHT have a better chance, but I wouldn't bet on it. 

Hope that didn't come across as too negative. Just sharing my thoughts if I received an offer like you are describing. 

Hey Mandi. I have put a lot of thought into this exact thing.

I am a SC Real Estate Broker and Investor, so I don't know FL Law/ Contracts, but here are the conclusions I came to.

The contract I use says it is either contingent upon financing or not contingent upon financing. If you say it is not contingent upon financing and your hard money lender does not come through, you are still legally obligated to purchase the property. That's not good.

If the cash is already secured ( in your hand) it doesn't matter where it came from. 

I run across the same thing with people taking money from their retirement accounts to purchase a property. Is that cash? I don't personally think so. (Or it is cash, contingent upon it being able to be withdrawn from retirement account?)

The best way to avoid trouble is to disclose everything. There is a place on my contract that says "additional financing terms ARE or ARE NOT Attached. You can use that to clarify. 

Item 28 on my contract is Additional Terms and Conditions. Basically anything that is legal is fair game there, or you could include an addendum and reference it there.

Hope that help!

Communication is key! Don't assume anything . Just make sure it gets there! 

Coming back to this thread 3.5 years later. I passed the test on my first attempt then worked for a great company for 3 years. In March of this year, I started my own Brokerage and am as busy as ever. Good Times!

I know a lot of threads die off after people get what they wanted, so trying not to let that happen here. Anyone reading that needs help in SC, let me know!