All Forum Posts by: Account Closed
Account Closed has started 18 posts and replied 117 times.
Post: Rant: Morons everywhere
- Accountant
- Posts 119
- Votes 52
Maybe it'll come back to you in the form of section 8 tenants ;)
Post: Taxation For Insurance Claims Kept Instead Of Used To Repair Property
- Accountant
- Posts 119
- Votes 52
This was a big issue down here after Katrina. People lost entire houses with nothing but the slab remaining. The insurance company pays you to rebuild the house, but whether or not you actually rebuild it is your decision. You took a loss and the insurance company pays you to bring you back to normal. There is no taxable event here.
This does make me wonder if certain circumstances are taxable. This would likely not happen on your primary residence with the $250k/$500k exlcusion but what if we bought a rental house for $50k, it appreciated to $100k in value and was totaled. The insurance company would issue me a check for $100k to rebuild the house. In my mind, I would have a $50,000 gain. It would be similar to selling the property. You're bringing up an interesting thought here....time to research!
Post: Expenses vs. cost basis in renovation
- Accountant
- Posts 119
- Votes 52
Originally posted by Dave T:
The IRS goes a step further and tells us that repairs needed to make the property ready to rent are also adjustments to basis and not expenses.
Dave is correct.
I'm under the understanding that if you do something to increase the value of the property (rehab, add cabinets, etc) then you will depreciate it.
If you do something to bring it back to normal conditions that you already had, then you expense it as repairs. (replace broken toilet, patch carpet, etc)
Post: how did you build you bank relationship?
- Accountant
- Posts 119
- Votes 52
Originally posted by Ed Lee:
Originally posted by Daniel Payne:
You said Hancock Bank. Where are you located? I'm just asking because I'm on the MS Gulf Coast where Hancock Bank started.
Daniel
I'm right up the rode in Hattiesburg... My highschool prom was at the Hancock Bank in GP lol...
Last name is Vines btw... Was concerned about using last name on the forum and receiving a bunch of junk offers.
Do you know the guys over at Regional Realty in the Kiln? Mr. Frierson is a good friend and mentor... I think that whole crew has decided to ditch real estate for politics lol..
Haha nice. No, I don't know them. I'm over here in Ocean Springs, on the other side of the coast. I've got a few contacts in hattiesburg, my brother in law's family.
If you're ever down this way give me a shout, I believe we're the same age. Once I'm done piling up money to buy rental properties, I'll get a boat and we could go fish the Oil Rigs about 50 miles offshore.
Post: The darker side of landlording
- Accountant
- Posts 119
- Votes 52
Originally posted by Gilbert B.:
But have any of you guys who experienced some sort of discomfort between possible future tenants, have something up your sleeve like
if you suspect something bad is going to happen and you say something like "assualt me and I will sue you" do you think the person will stop trying to be intimidating?
I would think that someone who is going to rob you or assault you physically is not really concerned about being sued. If they are looking to rent your house, they probably don't have any assets to fear being lost.
The business end of a .45 in their face would probably be a better negotiation tactic to ward off an assault or robbery.
Post: Strategic Default and Rentals
- Accountant
- Posts 119
- Votes 52
Originally posted by william dziedzic:
He has the means and capability to pay. The best underwriting in the world could not predict him waking up one day and realizing he bought as the wrong time and that he's just going to simply stop paying. That is why he is a deadbeat.
Post: Selling fully depreciated free-n-clear rental - minimize tax
- Accountant
- Posts 119
- Votes 52
Originally posted by Dave T:
Originally posted by Daniel Payne:
Originally posted by Dave T:
A fully depreciated, free and clear property won't have any depreciation expense to speak of and no mortgage interest expense.
Very high probability that this property generates a taxable income every year. No losses to suspend and carry forward.
You're right, but in a mixed portfolio with a free and clear and several leveraged properties, it could happen.
Selling a property with no suspended losses carried forward does NOT free up suspended losses from other properties. Prior year suspended losses are linked to a specific property and are freed when there is taxable income from that property or the property is sold in a taxable event.
I've not faced this scenario in real life yet. Thanks for the clarification. Each suspended loss is property specific? I'm not doubting you, I just haven't had this come up in practice yet. Time to do some research....
Post: how did you build you bank relationship?
- Accountant
- Posts 119
- Votes 52
Ed Lee,
You said Hancock Bank. Where are you located? I'm just asking because I'm on the MS Gulf Coast where Hancock Bank started.
Daniel
Post: The darker side of landlording
- Accountant
- Posts 119
- Votes 52
Not at all. I'm trying to stick with well to do areas. I've just heard horror stories and wondering if any of our fellow BPer's have experienced any of these.
Post: The darker side of landlording
- Accountant
- Posts 119
- Votes 52
Have any of you ever been threatened, robbed, physically attacked, or felt your life was threatened by either a tennant or a prospective tennant?
I've heard of "tennants" calling to look at a property they want to rent and meeting the landlord and robbing them when they get inside the house.
I'm curious to hear personal stories from the landlords here! I live in the south, a castle doctrine state, and have my concealed carry permit. I'm not violent in the least, but if this situation arose, I feel the criminal would have suffered from "poor victim selection" syndrome.
Any stories?