All Forum Posts by: James Yang

You think E&O is needed for a single deal like this? Christopher mentioned the same thing. Thanks for the info regarding new builders -- seems pretty straight forward. Does your answer change if not a new builder?

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Originally posted by @Ouman You:

Hi guys,

I need help figuring this out before hitting the CPA office.

House was bought in the 70s 80k, single, 200k renovation, market value 3.5 mil the house in California....how much capital gain taxes state and federal needs to be paid after the sale in 201o (new tax)?

Thank you,

Isn't that what the CPA is going to help you with? Capital gains depend on your bracket. Moreover you need to provide if you've lived in it as a primary residence for the last 5 years.

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Originally posted by @Mark Pedroza:

Are you working out of your home?

Do you have a fictitious business name since your a broker?

Yes, no office.

I don't have a fictitious name (see above).

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Originally posted by @Christopher Phillips:

@James Yang

Makes sense.

If you're going to operate as a sole proprietor, you should get E&O. It's not that expensive. You can be sued by any member of the transaction based on what was said or omitted. Not just from your buyer side of the transaction.

If you're only doing one transaction, it's probably not worth getting an EIN.

You can have the check made out directly to your name, you just have to remember to deal with it during tax time.

If you plan on doing more of these and other transactions, then it might be worth getting into a DBA and/or EIN.

I go through this all the time when I sign up with vendors to do BPOs. They always want a W9, E&O, social or EIN.

Thanks! Looks like E&O in California is about 800-1000 annually. Might risk it, as it's going to eat up all the commission then.

EIN seems to be free and fast, might just do it so I don't have to give out my social.

What are are some benefits are having a DBA? Seems like more for marketing and perhaps appearing a bit more professional.

1 Vote

Originally posted by @Christopher Phillips:

@James Yang

Did you hang your license at an office?

Wasn't planning to, it's a broker's license.

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So the folks are looking into purchasing a new house in California from some builders. Some of these builders have a broker's co-op and offer some commission to buyer's agents. I have a broker's license from awhile ago and renewed it last year but otherwise have never used it.

I'm wondering what's required from my end? From my research it seems I just need to have a valid license.

E&O Insurance/LLC won't be required as it's immediate family.

DBA seems to be optional. (Any benefit to having this?)

Do I need an EIN? I'm assuming the builders don't issue a 1099.

These builders generally have their own forms and require you to use them.

I'm just unsure what this process really looks like. Just wondering if anyone has been through this.

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Can't hurt to ask the seller for it.

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What's wrong with SJSU and Coyote Creek, @Sam Shueh?

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San Jose, California

The dre site is pretty extensive. After you provide proof for your accredited degree, the exam vs the salesperson is similar. Brokers has a little more and has to score higher to pass (75% vs 70%).

http://www.dre.ca.gov/Examinees/SalesExamContent.h...

http://www.dre.ca.gov/Examinees/BrokerExamContent....

There wasn't any surprises. Pretty straightforward.

1 Vote

All Forum Posts by: James Yang

James Yang has started 1 posts and replied 9 times.

Post: Looking to help folks looking to purchase new home in CA.

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Post: Looking to help folks looking to purchase new home in CA.

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