All Forum Posts by: Marian Smith

@Greyden Piechnick I don't understand. Schedule E allows all re investors to write off business expenses. Your mom, earning over 100k, cannot write off losses after taking depreciation so maybe she makes money until tax time when depreciation creates a loss.

@Yash Gautam Tax fraud if you file your taxes and claim losses or claim no profit on your rentals and had your parents paid a fair market rent you would have had profit to be taxed.

If you support your parents over a certain %, that is a tax write off.

@Greyden Piechnick She can write off expenses and depreciation on schedule E. If she is losing money after expenses and depreciation she cannot write off the losses against her income but must keep track of the losses and roll forward...but most people earn money from real estate after a few years. They sell if they keep losing money. So might look at selling now rather than keep feeding an alligator, if that is the case.

@Craig Starger Are your parents hoarders? How old are the properties? Next time you visit make sure the roofs are good on both structures and clean the gutters. Ask to help sort and donate unused possessions in at least the house they are living in. And inspect their house for water leaks in plumbing. Repair all holes in building envelope. Focus on making their house safe and comfortable and you will also be investing in your inheritance...and prolong their stay at home vs assisted living which is very expensive. A habitable house, empty with a fresh coat of white paint, has a good chance of attracting a buyer willing to pay more than an investor. Let the house run down and you will likely lose your parents earlier due to falls, etc as well as any inheritance of value.

seems like you'd sell b as homestead no capital gains tax and retain a as next homestead free to sell as homestead either immediately (not sure here as you may only be able to exclude gains once every 2-5 years, whichever is law) or in 2-5 years.   I see it as remodeling your homestead prior to selling which does not require you to treat it as an investment unless you actually then rented it out, collected rent and depreciated on taxes.  I remodeled my homestead prior to selling to get top dollar.  I guess I could have subdivided my two acres and sold the house capital gains tax free and retained one acre. I am not an accountant so verify, but makes sense to me.  dont think you need to 1031, expensive hassle.

@Patricia Aragon Oyster gray is a great grout color. It is more greige and is just dark enough imo, but it really depends on your tile. Thats why custom prints the color charts in stripes to place it between two pieces of your tile to see if it will look good. I like grout to blend in with the tile. I also like the fusion grout.

@Daniel Tisdale You are a two member condo association! What is unit one going to do? Fine you? Are they the only "board" members? Shouldn't unit 2 have a seat on the board? Shouldn't unit 2 be able to make a motion and vote on, say, no fines over 25 cents. Come on. The two member condos were just formed to sell two dwellings on one lot and maybe share one water meter. why does 2 have a garage apartment with no kitchen if not for str? it sort of implies str usage. how can #1 prove you are str and not letting brand new friends stay and give you a housewarming cash gift? Please!

@Surya Ghatty I think your gut is right. Maybe Liberty Hill ISD with neighborhoods off Parmer...Actually called Ronald Regan way out there. Straight shot down the road to Apple campuses but it is still a far drive. years ago I bought a used washer/dryer set from a young lady who had bought a house in Hutto with her boy friend. They broke up and she couldn't get any friends to room with her as it was too far out. Had to sell. You may do fine as Austin is projected to keep growing. I personally would not move out to Liberty Hill, too far, but I have a friend with horses who did.

@Rick Harmon Maybe he wants to finance after all but has cash in case he cannot. why worry, borrowed funds are the same as cash out of a savings account. maybe he wants to use as collateral for something else or is paying cash out of a sdira.

@Alexis York condos are the last to gain and the first to lose appreciation. and as a landlord you are competing with apartment complexes with corporate owners with deep pockets. You make your money when you buy. You may have to work a little to make money, not just "shop" on zillow, in this market. Either buy a fixer cheap or somehow find an off market deal. or wait. there is no hurry if you are not going to make a profit.