All Forum Posts by: Justin Summers

Bought a Foreclosure in my single member LLC and I need to file an unlawful detainer eviction.

I know some counties require an LLC owned property to hire an attorney to appear in court on behalf of the LLC and some only require that for corporations or for larger civil suits.. Anyone know if I can file and represent my single member LLC in an eviction proceeding in Anne Arundel County MD? or where I can find the rules for AA county ?

Thanks

Justin

I'm setting up a new brokerage referral business with a partner.  Nothing has been setup yet-  It will be pretty much passive income (we are RE Brokers and will be getting referral fees from internet generated leads. 

Is there a setup to avoid paying self employment tax/  SS/Medicare, ect.? 

Was thinking of setting up and LLC or partnership and only taking dividends yearly as profit... Would that work? or would dividends just get added to our personal net income?

Any suggestions? or out of the box ideas are welcome.

(Any 100% self-serving  replies like "Hire me as your accountant and I'll tell you" that don't contribute anything to this Forum Are NOT welcome)

My mother has a revokable living trust that holds most of her real estate property for the benefit of her 3 children after her death.  (Under 3 million in value) 

There is one property that she was going to leave just to me (her son) to pay me back for money I loaned her years ago..  When she bought the property a few years ago she put it in her personal name and my name as joint tenants with right of survivorship ..  So, that upon her death the property would transfer to me.. She is currently receiving all the rent on the property and takes all the taxes deductions.  I have never claimed it on my taxes. 

My question is this..  If she passes all the properties in the trust will receive a stepped up basis to the current market value at the time of her passing,  But i think the property that we hold title in both our names as JTWRS , I would only receive 50% of the stepped up value, is that correct.?

If we put the property in the name of the trust now and put wording in the trust that the property will transfer to me from the trust after her death I assume I would get the full stepped up basis? 

Bought in 2015 for $150k  .. value at Death $250k   

I'm assuming if we leave the property in both names I would only get a stepped up value to $200k and if we transfer it to the trust I would get $250k basis basically saving $50k worth of capital gains when I sell it..

Any input or feedback would be appreciated.

Just

 Interesting that all of your 77 posts are EXACTLY the same thing..  "Hire a CPA"  Not once have you ever in those 77 posts offered any knowledge or help to people asking questions. This is a real estate forum.. If you are not going to help anyone or contribute anything of value here, Why are you here? Simply telling people to hire a CPA and not contributing anything is really just self serving. Go to a CPA forum if you are not going to be a contributing helpful member here.

Florida gives a discount to seniors on their Property Taxes solely due to their age. How is this not age based discrimination?  Younger first time buyers, say early 20s, have less money than seniors whom have been able to save their whole lives.  But are charged more in property taxes than any person over 65 y/o regardless of their income or net worth.. Meaning, a 70 year old billionaire  in Florida gets a senior discount on property taxes while a 21 y/o first time home buyer barely scraping by doesn't solely based on their age.. Doesn't seem fair or legal.

Question.. I'm selling a rental owned by my self directed 401k and all the proceeds are going back into my 401k.. 

This is in Maryland.. The title company is unsure if they should withhold the state 8.25% witholding of the sales price for state income taxes since the trust is not a Maryland resident..

My questions.

1. I know I don't owe federal taxes on the sale because they are deferred but would I owe state taxes at the time of sale? 

2. If I don't owe state taxes should I claim an exemption to the title company withholding? 

Thanks for any help

Justin

It's an interesting discussion and while I understand most of the comments I don't agree with them.  To point out that most of the taxes go to schools and the schools need the money... Well, how is that fair to an out of state investor that has to pay more than the people that live in the community and actually use the schools?

The OP was asking how this is fair or if it's legal/discrimination.  I would no it's not fair.. But I would think "Investors" are not a protected class.. Unless you could prove that a larger portion of investors are of a certain Race than homeowners and therefore it's race based discrimination.  If those investors happen to be a minority race you probably have a case.. If they are not you are SOFL

I purchased a home at a mortgage "Foreclosure"/ Sherriff sale in June in Luzerne county PA. 

At first the local township send me the water and trash bill starting from the date of the sheriff sale.  Then they sent me a letter along with a bill for water and sewer from the prior owner for the last 2 years prior to my purchase. They really don't know one way of the other if they are entitled to back water and sewer charges. 

My question is if the water and sewer companies never filed a recorded lien am I still responsible for the bills 2 years prior to my purchase? I realize if they had filed and recorded a lien I would be responsible but are water and sewer "super priority" in PA were as they don't have to file a lien to survive a mortgage sheriff sale?  

Thanks for any insight. 

I need some advice on what is fair. 

I have a property in NE florida that had minor Hurriance damage. There was  leak and several pieces of drywall need to be replaced in the ceiling of the property.

The city declared the unit unsafe because the drywall might fall down on the tenant and made him move out of the property and is required the interior drywall work be preformed by a general contractor. I have contacted over 6 general contractors and they are all too busy for a small job to do the work.. I did find one that went out to assess the project and said that he could do the work for me but it's been like pulling teeth to get an actual estimate from him..  It's been a bit over a week since he went out and looked at the project.. He is not answering my calls and only replies to text messages after a few days.. with I'm working on getting you the quote.. I don't want to push him too hard because he is the only GC that I called that would be consider taking the work. 

So, here is my dilemma  the tenant had to move into a hotel after the city declared the unit unsafe.. We thought this would only take a few days to get him back into the unit but this week will be a month that he is the hotel.  He has not paid his rent for October but has been paying his hotel bill.   What is fair in this aspect? He is in a hotel which is of course much smaller then his 2200 sq ft 3 bedroom that he rented for $4,000 per month (the damaged condo)   It's just him and his dog.

I'm thinking that he should only have to pay the lesser of either the hotel bill or the monthly rent.. Meaning if the hotel bill is $3000 he should pay that for the month and not his $4,000 rent..  Or if the hotel bill is $5000 for the month I should require that he only pay the $4,000 he would be paying for rent... 

The lease really don't spell out what happens in the event the property is declared uninhabitable after an act of god. 

I assume I could simply end the lease but the tenant REALLY loves the condo and wants to get back into it ASAP and I really want to keep him as a tenant I guess I'm wondering what everyone considers is fair in this situation..

Thanks for any input

Ray "Justin" 

@David Messina I'm curious about what happened on this? I believe recording the HOA documents gives them lien priority based on that recording date.