All Forum Posts by: Christopher Smith
Christopher Smith has started 21 posts and replied 1024 times.
Post: Weird question, is this a bad idea?

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
@Lam N. One of the reasons I have property managers, never met a tenant in over 20 years and don't intend to meet one in the next 20.
Post: How do I avoid paying tax a private loan return?

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
If it was in fact a loan then it's simply a return of the loaned funds which would not typically be taxable (just a return of after tax dollars).
What were the interest terms on the loan? Any interest received will be taxable.
Post: Federal tax filing, price of the house or current market value?

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Lower of cost or FMV when you put it into service.
Post: 1031 exchange to buy future primary home

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
You might want to explore beyond the Federal rules any 1031 provisions unique to California. If you were ever to sell the 1031 property (the one converted to a primary residence) with deferred gain that traces back to the original California property exchanged for it they might try to assert taxing jurisdiction.
Post: Overpay for Grandma's house to save on Taxes??

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Non arm's length pricing
Readily apparent circular cash flow,
Form over substance,
Preplanned,
and even advertised in advance,
what's not to like
Post: Tax obligations on an inherited house

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Your tax basis (i.e., the amount used to determine gain, or the portion thereof that represents depreciable basis) will equal the FMV at date of death. In other words, your tax basis represents the step up (or step down) to FMV that occurs at date of death.
Post: IRS Plans to Double in Size - What That Means for Investors

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Originally posted by @Jay Hinrichs:
Just wondering what specific deductions / areas did they appear to target most heavily?
Post: Need advice on how to transfer condo from one gen to another.

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Does widely divided ownership in a realtively small real estate asset really make sense? Why not give the property to the one person best able to handle it, and then other assets to other folks to equalize as desired, or alternatively simply sell the property at death where there will be no gain and split the proceeds.
Post: Home equity loans to avoid capital gains upon sale

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Encumbering the property changes neither your selling price or tax basis.
Post: Biden Administration’s Capital Gains

- Investor
- brentwood, CA
- Posts 1,040
- Votes 729
Give Joe Manchin a call.