All Forum Posts by: Peter Thielemann

@Dwayne Ramsey

Hey Dwayne, thank you for your advice. I'm getting ready to retire and will be working on getting the house ready to rent. I am looking forward to the podcasts and other programs to learn. I will dig into all of your recommendations.

The step up basis ? I'm inhering the house from my mom. If the property were to be sold. Would the tax on the sale be based on the difference between the day my Mom passed and the day of the sale?

How does the step up basis work?

@Jay Hinrichs

thank you, I will take your suggestion and run it through with the wife and my son. I think you are right and I will run it passed an accountant. Again, thank you....

@Jonathan Greene

thank you Jonathan, I really appreciate you being real and sharing your experiences. With my zero experience in real estate. Trying to hack the system doesn't sound like a good idea. As the other post suggests selling and investing the money till I can find a turn key property sounds like the safest bet. With my bandwidth and trying to rehab the home and work 50+ hrs a wk. I see my train running right off the tracks.

Thank you again, for being real.

Thank you Jonathan, I have a family member that has several successful rental properties and is walking me through the process. We are weighing out the cost of rehab vs rental income. I'm finding out that if I make the property my primary residence for 1 yr and then turn it into a rental. The property will not be reassessed at the current mkt value and the property taxes will not change. If in fact that is true. It will be worth converting to a rental. Also, I'm looking for something to keep me busy as I ease into my retirement.

Hello all, looks like I'll be inheriting the house this month. Unfortunately I'm in So Cal and looking at a hefty increase on the property tax. I understand that if I make the residence my primary residence. I can keep the current property tax rate and will not be reassessed at current mkt value. I currently own a house in another city which is my primary residence. I am considering turning the inheritance property into a rental. I need time for remodel/upgrade before it can be rented. I'm looking for the work around so I can avoid the tax increase until the house is rented.  

@Kristi K. WOW! Thank you for the info.

@Matt Devincenzo ok, any tax liability at that time.

Quote from @Matt Devincenzo:

@Mark S. It would depend...I'm assuming @Peter Thielemann isn't currently retirement age but would be in 3 years based on his post. In that scenario taking a withdrawal now will result in taxes and penalties. In three years it would be taxes only...and with planning you could distribute over a couple tax years to keep the marginal rate low.

@Peter Thielemann distributing is taking the asset out of IRA ownership and into your personal ownership. Same as if you distributed cash, but instead you'd take the property out of the account for your personal use.

My SDIRA I have a traditional and a Roth. If I bought in the Roth, then I'd owe no taxes. If I bought in the traditional then I'd owe whatever my marginal rate was based on the asset value distributed. I'd consider doing partial rollovers from traditional to roth over the next few years to spread the tax hit out over a few years...again details matter, and maybe none of this is a good idea based on your personal tax profile.

A new question on using a IRA to purchase rental real-estate. I have several IRA's and combined I could buy what I'm looking for. Would I have to combing them into 1 account?