All Forum Posts by: John M.

My parents bought a rental back when I was in college and now they're going to give it to me. My name is already on the deed as are their names from when it was initially bought.

I'm trying to figure out the best way to transfer the property to just my name.
They've been taking depreciation out of it for 15 years.

Anyone have advise?

If they gifted it to me, then I don't think anyone has to pay taxes(not sure???), but I would lose a lot of depreciation on my taxes and I would capture ALL of the gains on my taxes if I ever sold it.

If they sold it to me at market, and forgave $26,000/yr of the loan as a gift, then they would pay the taxes now on the sale, and I would gain the full depreciation and I would escape the gains on my taxes if I ever sell..
My parents have some stock they can sell at a loss to offset their cap gains under this option.

What other options are there?
Is option 2 the obvious choice, or am I missing something.

Thanks

There's also a second level to the equation.
Everyone thinks in terms of the US when thinking about Gold.
BUT, gold is a global trade. AND it's local value is dependent on the value of the USD relative to other major currencies.

For example, say Europe turns around and gets better. That means the US dollar loses strength(does down) which means gold goes up for Americans.

My 2 cents. IMO it's a bet that realestate won't go down for 10+ years.
I would rather own homes in cash than take a leveraged bet.

If homes drop another 10-20% and you have $500k in paid off properties, it's different than if you had 2million in loans.
Not to mention, if you make 7% after expenses and 4% goes to interest payments, you're taking on a lot of risk to make just a few percent more. I'm risk averse, but IMO, I would stay safe.

I think the opposite is more likely. We barely have any inflation at the moment. Deflation is what most real economist seem to be terrified of. The reason is we've never successfully battled deflation, and deflation causes great depressions and we're in the perfect storm for one.

What causes deflation? Countries, States, people not being able to pay back debt. HOUSES loosing 30-50%....

Just think about how big of a deflationary force houses are. We've NEVER had a force this big pushing down before. The majority of the world has a leveraged "investment" worth $100-$300,000 that just lost 30%. That makes the leveraged stock bets from the great depression look like a rounding error.

The biggest fear is the Fed didn't borrow/print enough IMO.

Just saw this post.
I was doing some research into Higgs and it looks like it's an attempt to prove a theory on the mass of particles. Not to be confused with the mass of objects!!! The mass of objects is made up of maybe 1% of the mass of particles. Thus the higgs says nothing about our mass, only the mass of particles.
Our mass is 99% from the kinetic energy of the particles moving.

They call it the 'God' particle.
IMO it should be called the elementary school particle because it shows how little we know that they're just figuring out what causes mass, lol.

I've wondered the same thing.
Seems like you're going after a special case of someone 'wanting' something instead of the usual rental case of someone 'needing' a place to rent.
Not to mention, the math never seems to work. A $300,000 house that rents for $2,000? No thanks.

I'm curious who thinks our currency will still exist in 50 years?
And who thinks it will still be the world reserve currency?

I'm the only person I know of in my circle of friends.
I bought physical back in 2007 or so.
Most everyone I know, if they have any spare money, it's in cash.

The CORE of all of the financial problems is as follows IMO. Despite what Fox news says, it has nothing to do with the president, it has nothing to do with republicans or democrats.

The CORE of the problem is there's X amount of work, and they're Y+5Billion people looking for work. In the 50s, 60s, 70s, 80s, 90s X=Y round about.

The 5Billion new workers are China and India coming online.
With the internet, jobs are losing boundaries. And with currency imbalances, an Engineer in the US might cost $80,000/yr where in India the same person might cost $8,000.

The end-game is for the most people in the world to have jobs to be able to buy Coke, McDonalds, etc. That's the gameplan of the REAL rich. While the end-game plays out, salaries will meet in the middle over time which means massive pain for developed countries.

The only solution that I'm aware of is to handle it like Germany has. With protectionism. Big taxes on imports from overseas. The REAL rich have bought off our government though, so that won't happen.

What the developed world(US, Europe, etc) are experiencing is the beginning of what happens when the only real export for the last several decades are domestic jobs. Jobs are the only thing we sell to the world. When we send our jobs to China/India, the effects aren't immediate, but what happens in the middle class who buys everything dies. My guess is it continues over the next 20 years and will end in world war in our lifetimes.

US Poverty highest since 1960s:

http://news.yahoo.com/us-poverty-track-rise-highest-since-1960s-112946547--finance.html

Rolls Royce highest annual sales in 107 years:

http://www.autoblog.com/2012/01/11/rolls-royce-records-highest-annual-sales-in-107-year-history/