All Forum Posts by: Ryan Thomas

If you own the current property(ies) in your individual name and then transfer to an LLC, it would not affect future 1031 exchanges, as long as you are the sole member of the LLC and the LLC is a "disregarded entity" for tax purposes.

When you do an exchange, the underlying taxpayer for the sale needs to remian the underlying taxpayer on the purchase.

Therefore, for tax purposes, Dean I. = Dean I., LLC (as long as you are the sole member and the LLC is a disregarded entity).

Rick Albers

Kuperman, Orr & Albers, P.C.

@thomas 

@Thomas Wright Yes, you would need the full 120 hours to become a broker.

Yes, your town/county will give you this info.

$18,000 is quite possible for a $230k property in NY.

@Chris Mignone

Hey Chris, did you call?

I have been seeing those signs as well.

Thanks!

@Anne Holland

Hi Anne,

Are you interested in re-investing in new property? If so, then paying a QI $1k - $2k to handle the exchange is probably worthwhile, instead of paying the IRS $20k or so.

The type or grade of property does not matter, so long as it is real property that you intent to use in your trade or business or for investment.

Keep in mind, to defer all taxes, the new property has to be greater in value than what you are selling, and you must spend all of the cash proceeds.

Good luck!

@Kevin Myhre Hey Kevin - Let's connect, I can help you.

Hi @Jeremey Allen,

I'll take a stab at this one, but i'm not quite sure i'm understanding the question.

I'm assuming you are buying a 4-plex using a 203K loan. Is the 3.5% your $ down or the interest rate?

I'll go on the assumption that it's your interest rate. You want to improve the property and then do a cash-out refi in order get put some money in your pocket. I would think the 3.5% interest rate could change depending on the bank and where rates are at the time of the refi.

If you do an exchange, then you pay off the existing loan at closing of your sale and your loan on the purchase would be brand new, so the rate would depend on the type of loan and market conditions.

Keep in mind, if you exchange a 4-plex that you have lived in and held long term as an investment, you are only exchanging the value of the investment portion of your property. So if originally you got a good rate on your 4-plex because it was partially owner occupant, the rate on your new property may not be as good if the new property is 100% investment.

I hope this helps.

Hi @Tom Seccafico, welcome to BP!

I'm also from Center Moriches, currently living in Eastport.

Hi Mat,

That shouldn't be an issue for the eventual buyer, so long as he also has the right to assign the contract (to his QI in order to effectuate the 1031 exchange).

Hope this helps.