All Forum Posts by: Valentine Sviatocha

Hi everyone, 

Thank you in advance for the replies. I have been learning and listening about realestate investing for some time now and have questions about how real-estate can be used to reduce taxable income. Lets say that one has high income from primary occupation (its a non real-estate 1099 income). Is there a way to use investment real-estate to reduce taxable income from your primary job, without getting a real-estate professional status. I understood that depreciation from rental property can only offset income from that property and can't be used against non passive income source (plz correctly if I am wrong), especially if your active income is above 150k/year? Or did I get this info wrong? It seems that everywhere I look in the media the "experts" say that a purpose of a business is to use the income to buy real-estate and then use the depreciation to offset taxable income from that business. Does that apply to the scenario above or does it only apply to business associated with buying/flipping/managing real-estate? 

Thanks in advance for any input. 

Val 

@Basit Siddiqi thanks! Appreciate your input!

@Shannon Wright thank you so much for your reply. This definitely helps!

Hi, I wonder if any CPA can help shed some light on this situation: If a green card holder with foreign assets want to buy a home in the US, what are the tax implications if he/she transfers money state side for a down payment on the house? What if this down payment is transferred directly to an escrow account from a foreign account? Do they have to pay taxes on this money? Does it trigger an IRS inquiry(since it’s a large sum?) Are there any other implications ? Thank you in advance for your replies.

Mathew Owens Hi, 
Is it possible to get access to the recording of this webinar? I am looking for more info about 1031 exchange program, since I am going to sell one of my properties in the summer. Thank you in advance :) Valentine

Hi, Is it possible to get access to the recording of this webinar? I am looking for more info about 1031 exchange program, since I am going to sell one of my properties in the summer. Thank you in advance :) Valentine

Hi there fellow BiggerPockets Investors :) I would like to ask for some opinions as to what would you do in my situation. A few years back I bought a 3300sqft single family home for 650k in SilverSpring,MD in a new upscale development that has a mix of townhouses and higher end single family homes (VA loan). At that time the development was half way done, and because there aren’t too many new constructions around, it seemed that the price is justified, considering amenities (pool, secluded community, running trails,etc) and quality of construction. We also hoped for appreciation, once the community finished building, since supply would be finite. We lived in it for a year, and had to move away and rent it out. We found great renters which are with us till now. We currently live in another state. The lease with our renters is coming to an end soon and we are trying to make a decision as to keep renting out or sell and buy somewhere else. The rent is aprox $400 bellow our mortgage/insurance payments. There maybe a little room to raise rent, but it is unlikely to cover all of it (and that is not accounting for any future expenses, such as capex or maintenance). Our concern is that it seems that in the past few years there has been very little appreciation. I consulted a realtor and he estimated selling price at aprox 700k (just estimates). There are larger (although significantly older) homes around that sell for mid 500k, although they don’t have the community and the amenities. The neighborhood is not near high ranking schools, but the residents that by in our community are high income earners. The community is pretty much finished building. Our loan balance is aprox 580, and our concern is that we are not sure if it makes sense to keep this negatively cash flowing property, since appreciation is not there (and we were not familiar with BiggerPockets when we bought, so a lot of learning happened since). Perhaps someone is familiar with this market? What are your thoughts? Sell and possibly break even or keep renting out and maybe refinance as we get more equity (VA loan is no money down). Any advice or input is appreciated :)

Hi there fellow BiggerPockets Investors :) I would like to ask for some opinions as to what would you do in my situation. A few years back I bought a 3300sqft single family home for 650k in SilverSpring,MD in a new upscale development that has a mix of townhouses and higher end single family homes (VA loan). At that time the development was half way done, and because there aren’t too many new constructions around, it seemed that the price is justified, considering amenities (pool, secluded community, running trails,etc) and quality of construction. We also hoped for appreciation, once the community finished building, since supply would be finite. We lived in it for a year, and had to move away and rent it out. We found great renters which are with us till now. We currently live in another state. The lease with our renters is coming to an end soon and we are trying to make a decision as to keep renting out or sell and buy somewhere else. The rent is aprox $400 bellow our mortgage/insurance payments. There maybe a little room to raise rent, but it is unlikely to cover all of it (and that is not accounting for any future expenses, such as capex or maintenance). Our concern is that it seems that in the past few years there has been very little appreciation. I consulted a realtor and he estimated selling price at aprox 700k (just estimates). There are larger (although significantly older) homes around that sell for mid 500k, although they don’t have the community and the amenities. The neighborhood is not near high ranking schools, but the residents that by in our community are high income earners. The community is pretty much finished building. Our loan balance is aprox 580, and our concern is that we are not sure if it makes sense to keep this negatively cash flowing property, since appreciation is not there (and we were not familiar with BiggerPockets when we bought, so a lot of learning happened since). Perhaps someone is familiar with this market? What are your thoughts? Sell and possibly break even or keep renting out and maybe refinance as we get more equity (VA loan is no money down). Any advice or input is appreciated :)

@J.Martin Thank you. I was looking at a property in SF that would most likely need to be demo'ed and rebuilt, but it seems that everyone says getting permits in SF Us very difficult. Are you investing in the Bay Area? If yes, which part? Are you the organizer of the summit? Thanks again, Val

@j.martin Thank you. I was looking at a property in SF that would most likely need to be demo'ed and rebuilt, but it seems that everyone says getting permits in SF Us very difficult. Are you investing in the Bay Area? If yes, which part? Are you the organizer of the summit? Thanks again, Val