All Forum Posts by: Travis M.

Thanks, Ashish.Can you explain how the step-up basis works with LLCs? Is the value of the membership interests stepped up instead of the company's assets (i.e. real estate)? 

 Couldn't agree with you more on that. But we will just keep pretending that the CPI represents "real" inflation as the price of everything except consumer goods goes up 10% per year.

Hi all,

I recently received my property tax bill for a new rental I purchased this year. The previous owner was an older owner-occupant and paid virtually nothing in property taxes due to homestead and other elderly exemptions. I made the mistake at closing of letting the title company prorate my tax credit based on her previous tax year.

I have now learned the county is charging me taxes at the full value despite the property being owned by the seller for almost half of the year ($1,600 vs. $450)

I'm confused because other investors have told me you "inherit" the previous owner's tax rate for the year in which the property is purchased.

Anyone else in Jacksonville or Florida who can comment? Is there a way to dispute it this late in the year? 

Are there any tax disadvantages to transferring rental properties to a single-member LLC with disregarded status? In particular, would this have any adverse impact on the stepped up basis applied to properties inherited from an estate?

Rodolfo, most attorneys charge between $200-400 per hour. The total time on the project is really going to vary by how complicated the title/encumberance history is for the property.

Some homes are relatively easy; ex: where the seller bought it 20 years ago with one mortgage and hasn't taken out any additional loans since. Some can have a much more complicated history that needs to be unwound.

I would assume between 3-8 hours would be a reasonable expectation.

You could talk to a few different attorneys and ask them to give you a price range.

Nicolas, while the second mortgage is typically wiped by a first position foreclosure, you should check with your local real estate attorney. There is no one-size fits all.

There is a book called The Pre-Foreclosure investor's Toolkit by Thomas Lucier. It is available on Kindle and provides numerous scripts and letter templates in the book. 

Thanks James and others for the tips and recommendations!

Hi all,

Can anyone recommend an investor-friendly CPA in Jax for tax planning and assistance with annual filing? Preferably, this individual would also be a real estate investor themselves. 

Thank you!

@Wale Lawal

I think the Democrat’s self stated goal of printing as much money as possible will do what we have already seen - increase the value of assets.