Posted by Brandi_TX on April 15, 1999 at 01:21:20:
I saw the humor in it! Got a little chuckle, Thanks.
Way to “sell” it… er… um… “buy” it?? You know what I mean!
Brandi
What do you use for tax write-offs? - Posted by Jim Smith
Posted by Jim Smith on April 14, 1999 at 11:15:14:
My wife and I are interested in doing rehabs. Our concern is what to use for tax write-offs on the income we make from the rehabs? When you just flip houses or rehab them, you have income coming in but no write-off.
We currently own two rental properties which give us tax benefits but we are getting tired of dealing with tenants. We like the get in-get out strategy of flipping and rehabs better.
Can you suggest some ideas or any books that would be helpful in answering our question? All help is greatly appreciated. Thanks.
Jim
Don’t worry, be happy - Posted by Bud Branstetter
Posted by Bud Branstetter on April 14, 1999 at 23:59:54:
Why worry about taxes, write offs and such. Operate out of a Roth IRA and don’t pay taxes. To invest for 80%x1/27.5 deduction is not very creative. Buy so dirt cheap that depreciation isn’t much help. Use a dealer corporation and there is not depreciation. 1031 your existing properties into one that you don’t have the type of tenants that cause you not to want tenants.
In other words make so much money you don’t worry so much about taxes.
Rentals - Posted by Sean
Posted by Sean on April 14, 1999 at 15:32:07:
I was interested in those rentals you got there – where are they located? Perhaps I could lease those properties from you and sub-lease them to your tenants. You’d have no management hassles. In fact, I’d be willing to do it on a lease-option, say for 5 years? How long have you owned the properties?
Re: What do you use for tax write-offs? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 14, 1999 at 11:43:22:
It’s a must: Incorporate. Bronchick’s how-to articles are a good start, followed by his course(s).
Stacy
Re: Find a CPA that is an RE Investor - Posted by Millie I.
Posted by Millie I. on April 15, 1999 at 24:39:40:
On the contrary, Bud, my friend, the more you make, the more you want to be sheltered from taxes.
Just imagine making $300K a year, and Uncle gets $100K.
Now what if you made $3 million a year? Don’t tell me you are happy to give up one million.
I can appreciate Jim’s position, I’ve been tearing my hair try to reslove the same problem for a while, only I am way more involved.
Jim, get a CPA that is also an RE investor to give you some guidance. Have him/her do your taxes also.
I am bring my portfolio to see this CPA that teaches RE investments. I am going to let him tear it apart and rebuild my organization structure. I’ll most probably end up with at least 3 entities. I am also going to have him do my taxes in the future. My tax attorney has been doing my taxes for 10 years, but he is not a RE investor, so he may not know all the loop-holes.
Good Luck Jim,
Millie I.
Re: Rentals - Posted by Jim Smith
Posted by Jim Smith on April 14, 1999 at 20:37:20:
I’m sorry if I gave you the wrong idea. I’m not
ready to sell the rentals I currently have, but
would rather buy rehab properties in the future
instead of other property to rent out. Right now,
I need to keep my rental properties for the tax
benefits that I currently get from them.
Sorry if I wasn’t clear.
What Stacy Said… - Posted by JHyre in Ohio
Posted by JHyre in Ohio on April 14, 1999 at 16:07:15:
I agree. In addition, get a good advisor that looks for deductions under every rock & educates you on those deductions. Be methodical & document everything. For example, if I drive somewhere, it gets put into a journal. Each 100 business miles I drive is worth about $9.50 in saved taxes for almost no effort. Sounds trivial- until you add all of your trivial items up.
John Hyre
Little Joke - Posted by Sean
Posted by Sean on April 14, 1999 at 22:38:33:
I was just joking about your situation. Unless you live in Southern California I wouldn’t be interested. Just thought you (and others) might see the humor in it.