All Forum Posts by: Joshua Jarrett

My new tenants moved in a couple months ago and they are already wanting out of their 12 month lease.

The guy is in the Air Force and is pending a medical discharge. He is feeding me some BS about not being allowed to be on a lease until he is discharged and that he is required to move back to his duty station until officially discharged.
This is a huge pain which could have been easily avoided by not signing a lease in the first place. 

I’m at a loss at what I should do. He had a couple people that would take over the lease but they aren’t up to my standards. He is paying above market rent and I really don’t want to have to try and find more tenants. 

What are my options? Do I have to let him out of the lease?

You have to capitalize and depreciate the rehab cost. Sounds like you should speak with an accountant.

Curious as to if there was anything in the lease about tenants making alterations to the property and if this would have made a difference or not.

Old Thread but I'm having the same issue and the manufactured home I'm looking to buy is on a foundation in a nice neighborhood.

I'd be wary of taking advice from someone who uses a 6 year old college presentation as his source material. Like Ashish said, it shouldn't be up to you to interpret the rules, that is what you pay him for.

Brian,   

   Since all of your use was in that five year period your non qualified use is considered exempt. "Any period after the last day home was used as the principal residence by an individual until the date of sale. Also, such period should be within 5 years before the date of sale."

The rules mentioned in your presentation would kick in say if you rented a house for 10 years and then tried to live in for two years to avoid paying taxes on the gain... these extra rules keep that from happening.  Your guy should have explained that to you.

Brian,   

   Ashish is spot on... sounds like you might need a new tax guy.