All Forum Posts by: Sharon Carson

 I was thinking of just paying the tax.  I never considered this idea of short term mortgage notes!  Brilliant!  Thank you!

 Nope, I am not. But Thank you for your input!

 No, I don't have the cash! 

I'm considering the 1031 because of the huge capital gain I must pay.

And I AM switching States. Having read through these suggestions, a DSCR may be the way to go. Those loans aren't available in all States, I am moving to CO.

Anyone familiar with that loan in CO?

My property is currently listed for sale.  On one hand, I want to do a 1031 exchange, as I'm faced with an enormous Capital Gain.  

However, I have $154k loan on the property.  It will get paid off. 

BUT, to qualify for the 1031 replacement property as EQUAL in value, I will need to get a NEW loan for that $154k.  

My issue is:  HOW!?  I'm retired, with NO substantial income, except the Rental income!!  Unless I'm missing something, I would have to find a "hard money Lender." With interest rates as they are, this is NOT an appealing option!

If I do NOT replace that $154k loan, it would then be considered "BOOT".  (Correct?)  As such, I must pay taxes on it.  

Would it be better to just eat it and pay the taxes on that boot, or go with that "Hard money" Lender's rates?  Again, I show hardly any income, so how can I even do a refinance once the 1031 is complete? 

good idea! Thank you!

I have a troublesome tenant who most likely will not move out by his 45-day Lease termination notice.  He would be a "holdover" tenant, and I really don't want to do the eviction routine, as my property is currently listed for sale!  I just want him OUT.

If I offer him "Cash for Keys", is there any kind of LEGAL FORM , or contract that I should use to seal the deal ??  Binding?  Is there a protocol for this procedure?

I don't want him finding loopholes, and not move!

Thanks

HARPTA knowledgeable!

I need help to "crunch the numbers" HOW to sell my rental property!

Mahalo in advance!

@Dave Foster Thanks for your reply!

"Your adjusted cost basis is the purchase price of the land plus the cost (not value) of the improvements"  

= this is just it!  My current "cost basis" reflects only the land and infrastructure.  It does NOT include the home, or detached garage as IMPROVEMENTS!

I have considered a 1031 in the past, and I will certainly keep your contact info!

Thank you, Joshua!

Hello!

I bought raw land. I have built a house and a detached garage.

My County Property Tax Assessment shows the correct valuation.

However, the "cost basis" that my HRBlock person tells me is approximately $400,000. LESS than what it should be!

This means that when I go to sell it, I will be paying a ridiculous amount of capital gains!  Unless I can remedy this mistake!

Thanks so much for asking!