Harnia Real Estate Properties Investment Solutions

admin answers:

You are exempt from taxes on the profit of your home sale (the difference between the amount you paid and the amount you sold it for – NOT the amt you walk away with after paying off mortgages) You’re allowed 250,000.exemption for a single person, or 500,000 if married. You must live in the home 2 years out of the 5 also. You should owe nothing on your profit in your case.

admin answers:

More than likely the county appraiser will consider the fair market value of the property rather than what you paid for it. One very good reason is because it is not a “arm’s length transaction” since it is an arrangement between relatives. However what I have said is generally true but to be sure you need to call the property appraiser’s office or go there and ask them how they value property for tax purposes. They usually have a policy that often can be found on their web site or you can go into the office and have someone explain it to you.

But, what a deal! Your sister and her husband must be very generous people to give you such a price consideration on this house. You could spend a lot of money on taxes and still be far ahead of the game of building wealth.

admin answers:

I don`t think there is a way around it, being a business.
40% is usually the sum paid for inheritance tax, I think the tax for businesses is seventeen and a half percent value added tax.
The `house` part of the business should not be counted in with the business, so that brings down the price a bit.
Best thing to do is to ask an accountant.
Good luck – bloody value added tax and inheritance tax!!!

admin answers:

If you rented out part of it, it is not COMPLETELY considered your primary residence, and you must pay capital gains tax on the part you rented out.

On the day you began renting part of the house, you were deemed to sell and reacquire the house at fair market value. There was no gain on that deemed disposition.

On the day you sell the house, there will be gain on the disposition of the rental part (calculated based on square footage with the worksheet T2091(IND)-WS http://www.cra-arc.gc.ca/E/pbg/tf/t2091_ind_-ws/README.html ) with the basis being the value of the rental part on the day you began renting.

See Paragraph 30 of the Interpretation Bulletin:
http://www.cra-arc.gc.ca/E/pub/tp/it120r6/it120r6-e.html#P200_51963

admin answers:

It can have a lot to do on your taxes, in a few different places. For one thing, when you itemize your deductions you may be looking at a larger Mortgage Interest Deduction.

For the house you bought there may be some expenses on your closing statement that you can deduct on your taxes.

For the house you sold, you will most likely want to do a worksheet to breakdown did you make money or lose money on the sale. The IRS may request this worksheet at a later point. If you made money, you might have to pay taxes on what you made – not always, there are some exceptions. But if you lost money it most likely will not help you on your taxes.

But as long as you were not renting the old house out in those 5 months, then it should be only a little bit of information above to look at come time to do your taxes.

Shannon C.

admin answers:

Www.costar.com

www.realtytrac.com

www.mlxchange.com

Each has their strengths and weaknesses. I tend to use Loopnet and CoStar the most.

admin answers:

No, it’s just the opposite. I got out of real estate to become an investor because if you’re an agent you must disclose that you are an agent each and every time you buy property and then you are scrutinized to make sure you’re doing nothing illegal by the Division of Real Estate in your state wher eyou hold your license.

However a course in real estate (actually two, the pre-salesman and post course) taken at your junior college would be beneficial to you, and in the meantime you can search your library for what books interest you on investing before you go to buy your own on Amazon.com.

To begin investing you have to have your own start-up money of course, and you get that by working for years and years on other jobs before you get into real estate investing.

admin answers:

I can only advise that, if you do elect to become involved with partners, you have an extremely clear and legal agreement concerning any potentials with such an investment. I currently own about two hundred rental units and made the error of investing in one small property with a ‘partner’. It’s been a gruesome nightmare, and I would NEVER again become involved in such an agreement unless I had about 5000 pages of legalism covering my backside.

Take heed.

admin answers:

Website for wholesalesale real estate investors where you can flip your houses to other investors – http://www.equitypropertydeals.com

You might also need your own real estate investing website for flipping houses – http://www.realestateinvestorswebsites.net

admin answers:

OK first off – you can either get a Realtor or not – one of my best friends is a Realtor and I get all of his help for free but that is up to you. You will be able to buy things less expensive with out the Realtor but you can get burned. My advice is to do your research before you do anything.

And from there here’s my next little bit of info – forget websites – they are trying to sell you there”system”. I have been in the business now for 18 years and make a pretty decent living doing it & I learned every thing the old fashioned way – I went to the Library or bookstore and read.

And I still do – I read about three real estate investing books a month.

Believe it or not Carlton Sheets does have some good idea’s on non-traditional financing and finding opportunities. Donal Trump: Real Estate 101 is pretty good for a more experienced investor, but there are a miriad of books out there on the topic. In my opinion the best way is to set aside about two month’s to read maybe five to seven books and pick and choose which items seem to interest you the most. I like the nontraditional financing of no money down deal’s but then I am a trained salesman. I conversely have to have some help on maintenace issues – but for my best friend the exact opposie is true. What I am saying is do a little research and take the time to know what your good at and use that as your hook
Big Rich