All Forum Posts by: Tom Fidrych

Of coarse you would replace the fan if it came with the rental. A common cause of failure is the fan may have been screwed to a plastic electrical box. In such case, you should also switch the electrical box to metal.

0 Votes

New Haven, Connecticut

Quote from @Pete Harper:

Quote from @Bill B.:

When you did the exchange your cost basis was your old cost basis plus the added price and buying costs. If you sold a $500k property you paid $200k for and depreciated it down to $100k. The property you bought was $1million. Your basis isn’t $1million, it’s $100k from sold property and $500k added to make this purchase ($600k) So you would owe taxes on $400k if you sold tomorrow. (All prices are said to include buying/selling costs.). Plus you would also owe 25% taxes on that $100k you depreciated.

As far as states chasing you down, I THINK only California and for some reason a unique east coast state like PA have strange taxes/laws regarding 1031 exchanges.

I'm not sure you understand my question. I understand the all cost basis. My question is what triggers the IRS if you sell the second property? How do they know when you sell?

First property was in CA, the second property is in TX. How would CA know if I sell in TX? Assuming I hold in TX for 10+ years.

How far can you string 1031 exchanges into the future? If I do another 1031 exchange into a 2nd, 3rd, or 4th time do you break the chain?

If you sell a property in California, you are supposed to file form FTB3840 with the franchise tax board annually so that they can monitor the deferred state income tax.

0 Votes

Houston, Texas

Typically we run 4" pipe underground and port it out at a lower elevation. Hire a landscaper, handyman or laborer, not a plumber to do a job like this. What your plumber did is a temporary fix but will be in the way when it comes time to mow the lawn, etc.

1 Vote

How many dollars per square foot replacement value did your agent recommend?

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Yes, selling fees are deducted from capital gains.
If you sell an investment property in CA and 1031 it, you will need to file form FTB 3840 with the state each year and will have to pay CA taxes upon its sale.
Are you selling an investment property or lived in the property in 2 of the last 5 years?
Make sure you use a 1031 intermediary for the proceeds of the sale. My late father was an accountant and many time a year clients would come into the office after having sold a property and received the proceeds. They stated that they wanted to do a 1031 but since they took possession of the money, not an intermediary, then a 1031 exchange could not be done.

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Quote from @Jillyan MacMorris:

@Zachary Carver, I’m glad you mentioned that! I have only lived in the place for 14 months and it’s being sold. In that case, @Bill B., should I opt for a 1031 exchange?

You can only 1031 investment properties so can't utilize it for your primary residence.

0 Votes

Aurora, Illinois

Quote from @Chance Schrettenbrunner:

Hey all

Looking to buy my first deal, I have 2 options in front of me. One is a duplex, 2 bed 1 bath each side, with one side having a opportunity to convert the extra family room into a bedroom, and it is in a class A neighborhood. It will cashflow. Found out today that previous buyers pulled out due to septic being very saturated. Is that something I should run far away from?

Other one I am looking at is a 1 bed 1 bath each side duplex, but doesn't seem to have any issues, it is in a class B neighborhood. Already has an offer, so I am thinking in this market I should maybe move on that one instead? Im not sure.. This one has a offer so I may try and get it.

Just want to know yalls thoughts! I have no experience in this kind of stuff. Thank you!

The property with the septic issue could be troublesome. Sometimes a leach field is old and you can install a new one and have years of trouble free use. In the other extreme, the area may have chronically high ground water and or low percolating soils and you're fighting it each year. Perhaps doing extra pump outs each year or installing an expensive engineered system. Additionally, you have to educate the tenants on what can be flushed. Unless a septic contractor feels a new system can be installed (at sellers expense) and the area soil/ground water conditions are good, I'd pass.

0 Votes

I wouldn't buy it if your feeding it each month. As interest rates increase, I can't believe property prices won't decrease. You don't want to own a cash flow negative property that is under water.

2 Votes

All Forum Posts by: Tom Fidrych

Tom Fidrych has started 13 posts and replied 232 times.

Post: What do you do with old granite counter tops?

Post: Selling house with ungrounded 3 prongs.

Post: ceiling fan complaint

Post: Sale of 1031 trigger

Post: Is this the proper way to extend downsprout?

Post: Homeowners Insurance adjustment

Post: Questions from a 1031 Exchange Newbie!

Post: Can I use a 1031 on the sale of my primary residence?

Post: Should I let septic stop me from moving forward?

Post: Got into contract and realtor and lender are now upset