When you invest in real estate, you have to have a long term vision and patience. Unlike buying stock which can be readily purchased and sold, investing in real estate does not afford a quick sale. While it is true that in years past, people were able to flip properties and make fast money in real estate, for most real estate investors the idea is to buy and hold real estate. Some investors in real estate will benefit from federal income tax breaks and other investors in real estate can hold a piece of property and later sell it and buy other property while deferring the payment of any federal income taxes until the real estate is cashed out. Real estate is not a liquid investment and you may need to consider a long term strategy or option even if you are considering a shorter term investment in real estate. Read our articles on investing in real estate and learn about problem tenants and how to handle them. Learn about finding the right team to help you navigate the world of real estate investing. And, finally, learn about how to structure your investments, insure your real estate investments and minimize your federal income taxes.
Personal Residence to Rental Property in an LLC: Calculating Cost Basis and Taxes Owed
A personal residence became a rental property and was put into an LLC. How do you calculate the cost basis and taxes owed now and in the future on the property? Q: I read your Real Estate Matters article every Sunday in the Columbus Dispatch, and they have been very helpful in understanding many of [...]
Is Now the Right Time to Sell Your Rental Property?
Is now the right time to sell your rental property? We may be in a seller’s market, but that doesn’t mean you’ll get the most bang for your rental property buck. Q: As always, you give us a lot of good real estate information in your columns. Here's a question regarding my rental home in [...]
Trying to Profit From Pre-Foreclosure Homes? Read This First
Trying to profit from pre-foreclosure homes? Read this first before you dive into the complicated world of real estate. Q: I read an article you wrote about buying real estate through tax sales, and it was very good. I met a contractor who told me that he was about to lose some land he owned [...]
Estate Planning and Capital Gains Taxes: What You Need to Know
Estate planning and capital gains taxes: What you need to know before selling high value property that could be inherited. Q: My parents are elderly and live in Virginia. They own a rental house in California. Since they bought it, the home has increased greatly in value to about $1 million. They are trying to [...]
When No One in the Family Wants to Pay Property Taxes, What Can You Do?
When no one in the family wants to pay property taxes, what can you do? Even if the family has created a S-Corporation, you’ll still need some savvy tricks to save the property. Q: I am from the Island of Maui in the state of Hawaii. I am the President of my families S-corp and [...]
Do Appliances Increase the Cost Basis of Your Home?
Do appliances increase the cost basis of your home? The short answer: it depends on your situation. Q: How can you say, as you did in a recent newspaper article, that putting in a new washer and dryer is an expense that would increase your basis in a condo? Aren't appliances simply replacements rather than [...]
Landlord Rights When a Tenant Breaks the Lease
Landlord rights when a tenant breaks the lease vary based on the wording of the lease agreement and state regulations. Here’s what you need to know. Q: I have tenants who signed a six-month lease last month. A few days after they signed, they informed me that they just bought a house, and would like [...]
Tax Rules When Buying a Condo for Your College Student
Tax rules when buying a condo for your college student can get complicated, especially with capital gains taxes. Here’s what you need to know. Q: We bought a condo in our name and paid for it with cash. Our son moved into the unit and paid no rent for 18 months. He was working on [...]
What Happens to My Taxes When I Use a Quitclaim Deed to Transfer Property?
What happens to my taxes when I use a quitclaim deed to transfer property? The answer depends on a few factors, including whether or not you earned income on the property. Q: I bought a property for my niece some time ago. I paid for it with cash and she was paying me back in [...]
Turn That Music Down! Handling Loud Condo Neighbors
Handling loud condo neighbors who refuse to turn the music down and respect condo rules can be difficult. Here are a few steps you may want to consider before seeking legal action. Q: I am a condo owner in a four-unit building in Washington, DC. I believe my fellow condo owners are refusing to enforce [...]