All Forum Posts by: Charles Perkins

None of the above. This is a great time though to discuss tax issues and possible changes coming with a new president.

In my market we are not allowed to charge above market rent for section 8 and why charge below market on a standard lease.  I have had section 8 and standard leases.  The section 8 are usually far more work in my experience. 50% of the time we have had to evict them at some point.  

Here also evicting a section 8 tenant takes longer than a standard tenant.  This is due to longer notice requirements primarily.

Collecting from the housing authority is great.  The portion due from the tenant is often not so great in my experience.

We have 85% concentrated in real estate primarily due to appreciation.  I'm in the process of developing a property and will decide on an exit strategy when it's done.  This could change my allocation.

We are retired, but I still work as a REI professional.

I've used TurboTax in the past.  You'll want to get the appropriate version.  

In my opinion one still needs to understand tax law to effectively use the program.  Not sure how complicated your situation is, it is easy to miss necessary elections in order to claim appropriate deductions.

The JV is receiving capital. How this capital is accounted for depends on any agreements made between parties. Are you creating a partnership, is it a loan, etc If you don't have an agreement you should sit down and discuss it and put it in writing. In any case there is no taxable event yet.

As far as your brother is concerned, it again depends on the nature of the transaction. Is it a loan, is it an investment. In any case, it needs to be properly documented. The JV agreement should make this clear.

You may want to speak to an attorney and a CPA familiar with these transactions.

You'll want to be very cautious of what is considered normal wear and tear.  If the tenant was in the rental more than one year the painting is generally considered normal wear and tear.

I would also review state and local laws as well as any home owner association rules that apply.

The most relevant news in my real estate investing situation is news of the November election candidates and propositions.  Politics definitely effects taxes and the economy.

I'm sure relevance will vary by location, individual, type of investing activity and other factors.

Washington State has already enacted a similar law.  Existing security deposits are unaffected here, but we are no longer allowed to collect more than one month's rent in deposits and fees.  Also we have to allow the deposit to be made in upto 3 months of payments.

As both an investor and retired CPA, I know very well my tax and finance issues.  It was my habit also to instruct those who ran any business to be knowledgeable about the basics of tax and accounting in order to make better daily decisions.  Not all would take the time, but I liked to encourage it because it can help avoid costly mistakes.

REI comes with many fears. In the beginning I only thought I knew the risks. There are several things to fear money loss on a bad investment, government involvement in RE, bad tenants that cost time and money, hidden maintenance issues and/or land issues and the list can go on.

Today, I don't fear money loss or tenants,  the big unknown is how much the government wants to get involved in either taxes or landlord/tenant issues.