All Forum Posts by: Clifford Firthh

Clifford,

That may be the way that insurance company does it but that is not the norm. Most DP3 policies I write with, that will write in an LLC name, will allow the LLC to be the named Insured. If the Title is in the LLC, the LLC should be the named insured. If that company will not write the LLC as the named insured is it really eligible for their program?

Check with your attorney to see if having the insurance in your name would help a claimant break the corporate veil.  

@Clifford Firthh

Your tax basis will be based on your overall costs.

So let’s say you bought a property for $100k, put $50k into it, your basis is $150k. You sell it owner financing for $200k.

Buyer puts $40k down. None of the money you received is taxed.

The interest on the loan will be taxed at ordinary income rates. Once the down payment + principal payments from buyer equal the 150k then the rest of the money is taxed

Not a cpa and one can confirm above but this is my understanding