All Forum Posts by: John Richards

Hello everyone,

I am 59 years old and I am selling an out-of-state (NV) residential income property that was originally my primary residence and I am wondering about what I can do to lessen the tax hit.

I originally purchased this property in 2002 for $100k. I lived in property, as a a primary residence, until 2009 when I then converted into an income property and moved to ID.

From 2009 until present, I depreciated the property and deducted the repairs, expenses, etc. each year on my taxes.

I will be now be selling for approx $230k soon and I am not interested in purchasing any other property at this time. (I do have a paid off primary residence in ID that I now reside in).

I am totally fine with putting $ from the sale into anything that would help defer the tax penalty, even if I wouldn't be able to touch these $ until full retirement age (age 62?, 65?, 67?...to be determined).

Does anyone have any ideas on how to lesson my tax burden? Or, am i basically looking at paying taxes on approx $130k ($230k sell price - $100k purchase price = $130k profit) of income gain? Any idea what the tax rate be (approx.)?

Any advice would be greatly appreciated. Thank you.

Hello to all. First, a little background............

I live in ID and this past Jan (2017) I sold an income rental property that was located in NV. I originally bought the house in Oct.2008 and paid cash ($98k), in full, by using a Home Owners ARM Equity loan set up from my primary residence (also in NV, at the time). I never used this house as a primary residence....it was bought strictly as an investment/income property.

When I sold the house this past January ($162k), I wasn't interested in re-investing the $ into another investment property as I think I have Landlord Burnout......so I never really pursued the 1031 exchange program (that's another whole batch of questions, lol).

Does anyone have any ideas what I can do to help reduce/restructure my 2017 taxes to try and reduce the taxes on the financial "gains" for selling the property?

Btw, I also claimed depreciation each year (which I understand I will pay taxes on that also?).

I was hoping to find out that I could reduce my taxes if I parked the gained $ in some type of retirement account but it looks like that is probably just wishful thinking.

Depending on what I find out, I am also thinking of selling my other rental income property (also in NV) in 2018 as I'm trying to cut my financial ties to NV (long distance landlording is terrible).

If anyone has any thoughts, ideas or suggestions...they would be GREATLY appreciated.

Thank you.  :)

John

Was hoping to pick up a foreclosed property that could use a little work and hopefully save some $ (I am a bit of a handyman) as a primary residence and then hopefully look at another property a little while later (6-12 months) as an investment or turn the initial purchase into a rental at that same time frame.

I called the REO/foreclosure departments of a couple different major banks and they said that ALL of these types of properties can only be purchased from the realtors.

Is this true? Any advice?

Thank you so much for any advice....it is greatly appreciated!!!

Thanks for your replies.

Not exactly sure I understand them entirely though. I think the both of you are saying that the lender on the HELOC (house 'A') could possibly come after my other house(s) or, if I "carry the note" on house 'B', the bank would be the recipient of the monthly payment from my tenant/buyer until foreclosed deficit (from defaulting on house 'A') is reached and/or, my wages could be garnished. Is this what you guys were saying?

Is there anyone out here who knows NV real estate law specifically?

Thanks again.

Scenario:

House 'A' was entirely paid off. No outstanding loan. Primary residence (in Nevada).

Borrowed $ against house 'A' using a Signature Line of Credit HELOC (20yr. ARM) to purchase a single family residential rental property (house 'B') for investment reasons.

Amount borrowed with the Signature HELOC was $100k but property values (near house 'A') have fallen and are at approximately$70-$75k at this time.

House 'B' is "free and clear" with no loans, claims, etc. against it.

Have never missed a payment for this Signature HELOC loan but it is highly probable that I will not be able to fulfill this loan requirement.

Questions:

Can the bank (who I have the Signature HELOC with) come after additional assets if I default on the Signature HELOC loan?
I.E.: Can they put a lien, claim, etc. against house 'B' or any other property/assets?

I have thought about "carrying the note" (acting as a bank and offering a payment plan, etc.) to tenants of house 'B' but I am wondering if the above mentioned scenario involving house 'A' affects this idea?

I know this sounds confusing but I figured I would at least start here. Any comments or ideas are greatly appreciated.

Thank you.