All Forum Posts by: Account Closed

Taz tries to hand Dean one well certified clue.

You know, earlier today I was questioning why I have yearly ethics refreshers for our employees who buy, sell and manage our properties. This from Curt is a prime example of why we do it.

I did two web presentations today on ethics for Field Guide members. Part of my presentation talks about the crappy reputation we have as investors. Things like, "just turn off the utilities" is a big part of the reason we have to look up to used car dealers on the trust ladder.

Michael, your rental agreement will tell you how to give notice to terminate the month to month rental. Your lease will tell how to do an early termination on the lease.

Good luck and let us know how it turns out.

David,

If this is the book you are looking for...

http://www.reitactics.com/untitled-2

Accept my colleague request and send me an email, NOT A PM THROUGH THIS SITE. If that is the book you are looking for, I can replace your lost copy.

I sit corrected, again!

Accrual methods are generally required if you must account for inventory to accurately track your income and expenses.

A real estate investor, yes even a landlord, can choose to use the accrual method of accounting. For the life of me I don't know why a landlord would, but you could.

Once you have graduated the student loans are no longer "open lines" you can borrow against. They are treated like any other declining balance installment loan. Meaning, the % of the balance as opposed to the highest balance or what used to be the available credit limit are meaningless. Once you are no longer a student, you can't increase the balance of these loans except by defaulting.

Paying them down or off entirely will have the same effect. It will reduce your debt payment to income ratio and that is ALWAYS a good thing.

However, if you have other debt, like credit card, car loans and such, PAY THOSE OFF FIRST. Student loan interest is deductible even if you don't itemize. Other consumer debt interest is not deductible whether you itemize or not.

Actually, I sit corrected. There is a way to sell, carry back the note and still defer the gains. But, it is not a simple sale with owner financing and if your have depreciation to recapture it gets very complex, very fast.

Second, if you are on a cash basis, you consider it income WHEN YOU RECEIVE IT. There are only a very few exceptions when the IRS will allow you to be an accural based landlord.

If you sell and you do seller financing, you have received full payment of the sale in the form of a note secured by real estate. You will pay taxes on the gains in the year of sale and taxes on the interest as received over time.

I would urge you to interview some other CPAs. It sounds like the one you have may not be as familiar with the tax laws regarding real estate investing as they might hope to be.

At the end of the day, you and only you are responsible for the accurate accounting and payment of taxes to the IRS. Saying, my CPA said it was okay, has never worked in avoiding penalties and interest.