All Forum Posts by: Mark Creason

@Steve Laramie

I f you are going to buy a personal residence, I would do it first. Easier to qualify for a personal residence with that being your only property. With a second property, you might be looking at alternatives to DTI financing.

Mark

@Joie Wang

Where are you looking to buy? What type of property are you looking to buy? Programs exist to get this done in an LLC.

Mark

@Dave Foster

Dave would know.

@Hannah Whisenant

There is no holding requirement in the IRS Code.  It is about intent.  You have rented your property for 8 years so intent is pretty obvious.  

As mentioned above, I am not sure your Grandma could be your QI.  You need a neutral third party  and I am assuming your grandma would not be neutral.

You can close before id'ing on day 45.  You would not need to id in that case as your trade would be complete.  If you have not closed before day 45, you can use 1 of 3 rules.  You can id up to 3 properties, closing any combination of the 3.  You can use the 200% rule, id'ing any number of properties up to 200% of the value of your sale.  You also have the 95% rule, which allows you to id unlimited properties except that you have to close on 95% of the value of the id'ed properties.

I hope this helps.

Mark

@Steve Boss

In most 1031 exchanges, you will not have problems.  The one time you need a good QI, will the savings make up for a blown exchange.  I have been involved in a number of exchanges as an investor, a broker, and a lender.  I have seen a QI completely blow an exchange on several occasions.  I would rather spend a little more money for the peace of mind.

Mark

I just filed mine and Collin County offered to reduce 27k on a value of 602k.  Debating on whether to accept.  If I hire someone, I would owe them 40-50% of reduction including the 27k I already have bankable.  Any thoughts?

@John Hunter

A couple of points to add before all the smart guys respond.  Depreciation recapture is taxed at 25%, not as ordinary income.  You can have cash or mortgage boot, which is taxed as profit first.  If you have a net 100k property sale, with a 50k adjusted basis, and a 60k mortgage, you would need to find a replacement property for at least 100k, with at least 40k in cash (sale proceeds) in order to defer all taxes.  If you had this scenario and only bought a 40k replacement with the 40k in cash, you would have mortgage boot of 60k, owing taxes on 50k first.  Hope this helps.

@Justin Leffew

In the guidelines for an Opportunity Zone Fund, I believe it states that you need to invest 90%+ of the proceeds into an opportunity zone census tract properties.  You also will need to use capital to significantly improve the properties.  Let me know what the attorney comes up with.

@Tyler Wotherspoon

Need more information.  USPS is a quasi-government tenant.  They have an investment grade.  What are the terms you are looking at?

@Felicia Hamilton

commercial is a non-conventional loan.  I have done commercial loans for multi-family, retail, office, etc.

Mark