All Forum Posts by: Christopher Smith

Is it a Durable Power of Attorney? 

From my admittedly lamens understanding a non durable POA is only valid as long as the person granting the power permits it to be, or until that person loses capacity.

As such that person can at anytime revoke the power for others to act in their name or can excercise the power to act in their own name without restriction.

If the POA was durable and the person granting the power has previously lost capacity (however that is formally determined under the DPOA) then the power may be legitimate.

If he once lost capacity but now has it back (which I think is a possibility) then perhaps he can revoke the DPOA (assuming the POA was durable to begin with) if he can establish he has the requisite capacity again.

Interesting I just searched your "inversion" technique. Sounds relatively straight forward.

Drop old S Corp underneath new S Corp, then

make Q Sub election for Old S Corp, then 

convert Q Sub to LLC to which you are then admitted.

Is that it? 

The old S Corp shareholder's ownership interest in new LLC is still indirectly trapped in S Corp solution, but your LLC interest is not?

I've worked very closely over the last 10 years or so with the other type of corporate inversion so I was interested what this other "inversion" was all about.

Are they highly appreciated? You might factor in the step up in tax basis if held to death.

You mean defer capital gains? 

Are you the estate's executor / or appointed administrator?

I guess the first question would be do you know if you will even be able qualify under the detailed material participation rules? 

I don't pay any OH tax on my OH rental properties (the income those properties generate is effectively not taxed there), although it doesn't lower my overall state tax liability as I must pay full tax on them to my resident state CA. 

If I did pay OH tax it would be fully creditable to CA so the net state tax paid would be the same in my case.

A higher rate always implies higher risk and/or a compromise with your liquidity. For example I invest in mReits, very high current rates earned (greater than 10% in many cases). Very liquid as well, but very volatile too. When Covid hit my principal balance on an mReit dropped 70% almost instantly, it's coming back day by day and I have no immediate need for cash so I can easily wait out the recovery. In fact I may actually benefit as I can add more at lower prices, but had I needed the cash liquidity at that very instant I would have gotten absolutely killed.

So no free lunch, if you stretch for yield you potentially pay one way or another for it, as long as you understand what can happen and are good with the risk return trade off - well enough.

@Jimmy Chao

Contacting your insurance company should get the ball moving in the right direction.

Where was your oos PM in all of this?

I'm a CA landlord with midwest properties, my first call with everything is touching base with my local PM as he would be my boots on the ground contact.

Every investment should be evaluated on its own economic merits, if you can find one that fully satisfies your criteria, (e.g., risk, return, liquidity, etc.) then fine. If not then don't just throw your funds into something just because you want it "working for you", that's a sure way to solve your excess cash problem you won't have it for very long.

Interest rates are admittedly very low so too much idle cash is an issue, but you certainly won't solve it by haphazardly putting money into to the first "high yielding opportunity" you run into for expediency sake.

Excercise a degree of patience and don't compromise well thought out selection criteria.