Video instructions and help with filling out and completing sale of rental property irs publication 544

Instructions and Help about sale of rental property irs publication 544

Hello everybody call your sweater in Birmingham Alabama hope everybody's having an awesome day wanted to speak specifically today to our investor friends folks that are investing in real estate whether you be a owner of one or two properties or whether you have a lot of them and you have a managed by property management company or you may have a property management company yourself and the IRS came out with new law that really does affect every one of you and it's something that we haven't had to do especially the folks that have one or two rental properties haven't been real good at or just didn't do it and that's issuing 1099 to people that have done over $600 worth of work on the property whether in any shape form fashion they don't care anymore if someone has done over $600 worth of work in a given calendar year to your rental property in other words you've had somebody do six hundred dollars worth of maintenance they need to get a 1099 at the end of every year if they if someone has done you can imagine anything if they've done $600 worth of pest control treatment you need to give them a 1099 and this is a change they really weren't targeting if you will targeting by law the 1099 requirement for the mom and pops you and me that have one property but now they will and you know where they're gonna get that information is when you have to put it on your schedule II I guess rental property or you know you have a partnership return and then you're showing all these expenses and you show $8,000 for a particular expense yet you don't they don't see any 1099 matching up with that expense in the computer and you know how they are right now they're really going after to try to find ways to make up income dude of everything that's going on in the world right now but the deficit that is so but pay particular attention to making sure you issue a 1099 because there are penalties if you don't do it and there are ways that they will at least attempt to match those up through your tax return and even if you know it's 600 601 and you didn't do it your subject subjecting yourself to a penalty so be very cognizant that know that if you have rental property it simply applies to you there's no well it may not apply to me they've now said it applies to you if you got questions on this email me call you're at mega agent real estate calm have an awesome day

FAQ

How can I avoid paying capital gains tax on the sale of my nightly vacation rental? I did not realize how much I was going to have to pay and now am stuck in a contract to sell?
If you’re looking for tax-avoidance strategies, you should consult a tax advisor.It is possible that such a qualified tax professional would recommend you do a like-kind exchange, where you purchase another property with the proceeds of the sale.The basis in the original property would be rolled into the new property, so you’re not “getting out” of paying taxes, just deferring them.In any case, it would be irresponsible to attempt such a transaction without any further research than an anonymous answer from the internet.
Real Estate: How do I best structure a rental property if the bank refuses to title it to an LLC but I still want to operate it out of an LLC?
The bank doesn’t have anything to do with the title to the property.The bank makes loans.What you seem to be saying is that you are buying the property with a partner and you want the bank to loan money to an LLC.Why would the bank do that?The bank needs a first lien on the property to secure the loan. Only the owner of the property can give the bank a first lien. That is you and your partner.If you are saying that you want to create a Limited Liability Company (LLC) with you and your partner as the sole owners, and then have the LLC purchase the property, and you want the bank to loan the money to the LLC to purchase the property, then the answer is simple.The bank is the one who makes the decision about loaning money.If the bank is not comfortable loaning money to a company that, by its very nature and name, has no liability for paying it back, beyond foreclosure on the property, then the bank will not loan the money.The bank would prefer that you and your partner borrow the money.That way, if you do not pay it back, the bank will foreclose on the property and sell it at auction and apply the net proceeds to satisfy your loan.And then, the bank will sue you for the remaining balance and get a deficiency judgment against you for the unpaid part of the loan.And that’s why banks will not loan to an LLC, but will loan to the owner of the LLC.Plus, and I don’t want to scare you with this, if you try to pull some stunt to get around this, you are operating in the area that is called “fraud” and you really don’t want to go there.Accept the decision of the bank, and look for a commercial loan, or to private “hard money lenders” to provide the funds.I hope this helps.Good Luck.Michael Lantrip, Author “How To Do A Section 1031 Like Kind Exchange.”
I've been asked to vacate a rental property in Ohio. How long do I have before I need to be out of the property?
I believe all US states are the same but not positive. But in Florida a landlord wanting to evacuate a tenant for non-payment or other breaches of the agreement will serve a "three-day notice to vacate" to the tenant. Weekends and public holidays are not counted in the three days. The tenant either corrects any deficiencies or refuses. The landlord then files a complaint with the county court, and the tenant then have 5 days from the filing to file a response with the court, giving their reasons for not complying. The court will set a hearing date with both parties and a judge will give his decision. If the ruling goes to the owner then the judge may give 24 hours to vacate and at the end of which, a police officer will be assigned to see the physical eviction. If the tenant is not around at the given time, the landlord can enter and put the tenant's possessions on the sidewalk, cut utilities, and change the locks. The outcome is always nasty.
How long does it take to evict a tenant and have him completely out of your rental property?
It is going to depend a lot upon the local law is whatever jurisdiction the property is in. Each state is going to be slightly different and there may also be county or city laws that apply. You need to familiarize yourself with these laws if you are going to be a landlord. In some jurisdictions the process can be a matter of days or weeks and in others it could take considerably longer.
How do you feel about landlords that require you to fill out an app prior to seeing the rental property? My daughter is a CO, has a perfect rental history, and a very high credit score. We ran into this while she looks for a rental.
“How do you feel about landlords that require you to fill out an app prior to seeing the rental property? My daughter is a CO, has a perfect rental history, and a very high credit score. We ran into this while she looks for a rental.”I have a certain sympathy for landlords. It isn’t an easy way to make a living. You have huge capital tied up in immobile investments. One destructive tenant can wipe out the profits from 20 good ones.If you want a landlord who will show the property without asking questions until and unless you show an interest, you can probably find that. We had that when we rented our first apartment after retiring and selling our house (Liberty Lake Apts in Boise ID - great place BTW, we recommend them). The nice office lady showed us around the complex, and let us inside an empty unit just like the one we eventually rented. (That empty unit was already promised to someone else, the one we eventually rented was still occupied). Then we went back to the office and filled out applications.But anyways, it all comes down to supply and demand in a free market. If you want a landlord who asks no questions, you can find one. Probably a “slumlord” who doesn’t maintain the property and has lots of anti-social, destructive tenants who would make dangerous neighbors. If there is a glut of housing in your market, you can find landlords who bend over backwards to court you. If there is a housing shortage, you have to play by the landlords’ rules.
I wish to let out my property as one of the Kissimmee Vacation Rentals? How to do it?
Register with vacation rental websites such as HomeEscape and list your property therein. These are completely free platforms that do not charge anything for listing. You can easily submit your property photos, location and other details. This online platform is available with a complete set of tools that ensures full technical assistance and South Haven Vacation Rentals booking. You can review property performance and also get free resources that guide you on how to market your home, condo etc. better as one of the Kissimmee Vacation Rentals. You can add all the important details, such as your expected charges, the amenities in your Niagara on the Lake Vacation Rentals property etc. Resource https://www.homeescape.com
My parents owns a rental property. They put the house under my name, but they collect the rent all to themselves. What is the impact of this situation on my tax return and how do I get out?
Obviously you should consult a tax professional if you are concerned. It as I understand it, the home is deeded in your name. If that’s true, you own the home. I am assuming they transferred ownership through a quit claim deed and they have no ownership rights. Since you are not personally in the rental business you have no rental business to report to the IRS if in US. At the same time, you have given permission by default for your parents to use your house as a rental business. They might be filing a business tax return for their rental business. I am guessing that they pay the taxes, insurance and all expenses so they deserve the income. Since they don’t own the home, they likely can’t write off depreciation. Your taxes might get questionable if you try to deduct real estate taxes paid if you didn’t pay them. If all of this bothers you and depending on your relationship to your parents you could transfer ownership back to them via a quit claim deed and pay the required filing fees. There would be a potential liability issue of course to you if you continue as is. You are owner of record and could be sued if someone was hurt or damaged in the home. Not sure if your parents can book insurance since they are not the home owners. Sounds a bit shady.