All Forum Posts by: Gary F.

Originally posted by @Ashish Acharya:

@Gary, I will let other chimes in at the Monetized question. 

Another great way to actually defer the capital gain and also walk away with cash is investing in the Qualified Opportunity Zones. 

This is a new provision added by the tax reform. 

Unlike 1031, you dont have to invest your entire proceeds to defer the gain. You can invest only the gain part from your sale, and keep the basis to reinvest the way you want at the auction. 

The gain you invested in the OOZ will not only be deferred but also avoid 15% tax on the cap gain that you reinvested. 

If you happen to make more gain on the cap gain that you invested in the OOZ, the additional cap gain in your reinvestment will be permanently avoided if you hold your reinvestment in the OOZ for 10 years. 

That is high level overview, something you want to bring up when talking to your professional. 

Good luck. 

 Wow, this sounds amazing.  I've also heard of the Delaware Trust method, a little known vehicle also. But this sounds even better.  Know anyone with more experience? I'll start a new thread for this topic.  Thanks a bunch, Ashish

Looking at alternatives to offset or defer capital gains. Yes I know about a 1031 exchange so that remains a viable option. But I’d like to have more freedom with the monies such as buying on auctions or other investment strategies. Anyone done a Monetized Installment plan can share their experiences?

It depends.  A statement and an open-ended question at the same time.

I'm thinking if I sell, I could purchase later in the Santa Clara County, or another transferrable county using Prop 60/90 to my advantage.  Its supposed to be equal to or less than the sales price.  I'm assuming then I could sell, purchase a smaller unit such as a condo/townhouse and qualify to keep my tax base.  

I would also use some of the sale proceeds to buy other investment properties elsewhere, maybe even a 1031 exchange since its been a rental and my primary residence. 

The market may be softening a bit, more inventory, more DOM, some purchase price are decreasing (as opposed to 4 months ago when sales price was higher than list price), but I will still have sold with a fair amount of equity if I sell today.  

Well, of course the hotly debated topic. I'm toying the idea of selling my SFR in 95119. It seems the market is softening for rentals and hence, rental income. Plus a SFR residence is not the best vehicle for rental. I could get more by renting out separate rooms in a co-living situation, but much more headaches and management. I'm not sure i'm cut out to be a landlord dealing with TTT (tenants, toilets, termites). So maybe take my $$ now and reinvest in MF with professional PM or other non-tenant investments.

Many say, it's hard to buy back at current prices, which it definitely is. But if the market goes down (which again, no one knows for sure where it'll go in the next 2 years or so), then I could buy again then.  But in other words, once I sell, it'll be very difficult to move back here.  San Jose is nice and improving though.  Close to Tahoe, SF, Monterey, and so many opportunities here.  But other places to live are calling me too.  Many thoughts....

Great information,  Thank you. So even just Airbnb a room, we need to register for a business license?  We also need a license for renting out longterm tenants?

I'm interested in this too. The challenging part is getting someone in there for daily cleaning, laundry before the next guests come.  And answering messages, especially if you're away in another time zone.

For San Jose, do we have to obtain a business license to run AirBnb out of our private home?

Does Airbnb pay the 10% transient tax for us or do we have to pay the city ourselves?

This has been asked before, but those posts are older.  If you have a good referral out there, please PM me. Thanks

you sure on the covered parking? last I read, it was one driveway spot if there's no public transit within 0.5 miles (and pickup every 15 mins at commute times). 

And depending on how the garage was converted, you might not need to tear down. I cant see a garage conversion being massively out of code unless they've done structural changes (load-bearing walls, which would be exterior anyways).  The city is being flexible in helping unpermitted ADUs to become up to code.  SJ is one of the better cities to work with in terms of flexibility and working with the residents. 

If you have open access for a truck to pull in, or for a crane to lift the modular over the primary home, then modular is the way to go.  From an investment standpoint, if you're not after custom floorplans then it makes better financial sense too. And like Antoine said, they're faster to build not being dependent on weather conditions (except for the foundation and prep work).  There's so many companies out there, and prices have risen significantly in the past year due to local demand, as well as those working on the rebuild efforts in the fire regions.