All Forum Posts by: Greg Kuzmits

@Ida Saidkariev @Hal Thompson  Very insightful observations and perspective!

Boom and Bust cycles are the norm, not the exception...Bubbles are everywhere and it benefits those who are prescient to see the big picture.

@Charles P. 

However, not all gains benefit from the long term capital gain tax rates. Depreciation recapture is the portion of the gain attributable to the depreciation deductions previously allowed during the period the taxpayer owned the property. The deprecation recapture rate on this portion of the gain is 25%.

Sure, @Alberto Murillo Since your Father is gifting you property as opposed to currency/cash, you will need to determine your Father's basis in the property (less the allocated financed amount); of which you would be required to "carryover" during your ownership going forward.

An example may better clarify: Say your father gifted you 100 shares of ABC common stock which when he gifted it to you the fair market value (FMV) was worth $10.00/share or $1,000. Your basis would NOT be the value of the stock ($1,000) as of the date of the gift; but, rather you would "carryover" your Father's original basis. So, say he paid $5.00/share or $500 then your basis going forward would be $500 or $5.00/share. Ergo, when you subsequently sell the shares you would owe capital gains on the difference between your basis ($500) and the amount that the stock was sold for.

Say, you eventually sell the stock for $1,700, your capital gains would be the difference of the "carryover" basis of $500 (NOT the $1,000 FMV as of the date of gift) and the selling price of $1,700; hence, your capital gain would be $1,200 - subject to the capital gains tax rate that would be in effect at that time.

Again, seek out a competent tax advisor for further guidance.

@Alberto Murillo A gift in excess of the annual exclusion ($14,000 in 2017) would require the filing of a "Gift Tax Return Form 709" not Form 706.  The lifetime gift/estate tax exemption is $5,490,000 in 2017.  No tax liability would be assessed to either the donor or donee (you or your father).

As long as your Father's total estate is below the exemption amount there should not be any Federal gift/estate tax.  However, State taxes could be another issue.  Please check with your tax advisor for clarification on that level.

Lastly, you will definitely need to determine your basis in the property going forward; again, be sure to work with your tax advisor.

@Shawn Pottschmidt

The financial institution should have provided you with an annual IRS Form 5498 Statement which reports information about individual retirement accounts and other tax-preferred savings accounts.

Form 5498 is filed with the Internal Revenue Service and a copy is also sent to the person who owns the account. Essentially, Form 5498 provides independent confirmation to the IRS of the amounts you contributed to IRAs and other tax-preferred savings accounts.

Be sure to go through your prior year tax returns to see if you kept your copy with your return(s).

@Greg Horn - Aloha, we do not arrive until the 27th by way of Phoenix.  Will be staying at the

Marriott's Kauai Lagoons - Kalanipu'u until the 8th and then heading to Kapolei on Oahu for a couple days before departing the islands.  Would love to connect while on Kauai.  A hui hou!

@Thomas Landis - I would be delighted to meetup and help plan for 2017.  I will be scoping out properties on Kauai and will not be back until the 12 December.  I'll be available anytime thereafter...keep me posted.

Mahalo & Aloha!

Hi everyone,

I'm looking for a reputable Property Manager in or around Bedford, IN.  Any recommendations would be greatly appreciated.

Best,

Greg

Cody,

You're most welcome to attend...

Bloomington R/E Investor Group Monthly Meeting

Time of Event: 09/19/2016 at 07:00PM
Location: Monroe Public Library
Fee to Attend: Free

https://www.biggerpockets.com/forums/521-events-an...

Regrettably, I am unable to attend this month.

Best to all!