All Forum Posts by: Joshua Thompson

Here is the post https://www.biggerpockets.com/forums/51/topics/1204912-how-t...

I believe someone just posted a great discussion regarding finding land values in this section a few days ago. I would highly recommend giving that post a read!

For our clients, we typically look at the most recent appraisal, county records, or property tax statements from the year of purchase. We don't do an 80/20 or 70/30 rule as it doesn't give you any ground to stand on if ever audited. 

If you don't have an appraisal and cannot rely on the county website then speaking with an appraiser sounds like your best option to get an accurate valuation. Be sure to ask them how close their appraisal values typically compare to the county records before starting this will give you an idea if in fact the county records are far off. Take the answer with a grain of salt because values can vary drastically.   

Hi Zack,

A big item to think about here is your intentions for the property. Will this be a rental or something you'll be living in? I'm assuming it would be a rental but assumptions cause errors so I won't get too much into it. I would determine your intentions for the property, if lenders will lend directly to your LLC, your purpose for doing this as a business, and if you plan to build homes again. Once you can answer these questions I highly recommend reaching out to an accountant willing to consult you to address these items and dive deeper into your tax situation.

I hate to give a broad answer but it's difficult to answer this without additional information and directly in the forum. This is a great one-on-one question with an accountant.

Hey Donald, I would say connecting with an active accountant here in the forums would be a great start. You can also use the "Build Your Team" feature to search for accountants on the platform that advertise through BP. This sounds like a fairly simple straightforward situation that just about any real estate savvy tax professional could assist you with but don't get me wrong I've seen plenty of professionals mess something like this up.

 Of course! Let me know if you need anything else and we wish you the best of luck!

Hi Tomoko,

As long as they are an EA, CPA, or attorney that works in the tax field and they have good real estate knowledge I would feel comfortable interviewing them to see if it would be a good fit. Relationships and communication is huge and that's what we try to focus on. If your current accountant isn't a CPA but one of the other two above, you have a good working relationship and they have real estate tax knowledge I would recommend staying there to be honest.

Best of luck!

 Hey James, I wouldn't feel comfortable giving a guaranteed 100% answer to someone on the forums without doing my due diligence on their situation. I would recommend jumping a 30 minutes call with an accountant and invite your financial advisor to discuss this transaction as well as your personal goals and plans for the funds.

You most likely will not have a tax obligation but without knowing your full tax situation we won't be able to say that with 100% certainty. In an ideal world, you'll report the sale of the home on your personal tax return and qualify for the exclusion. At the end of the day, if it all works out, there will be no additional income shown on your tax return, you'll only be reporting the transaction for informational purposes and to prevent a notice.

Zach is correct above, we aren't supposed to promote our businesses. I would recommend contacting a handful of people you see active on the forums and speaking with a few other investors to get a referral. 

Good luck in your search!

 I disagree here. A retroactive application yes would be more work for us but it could make a huge difference for many people. I wouldn't say it's dead, too many other bills they can squeeze it into.