Buy from Retiring LL (by MMIT [VA]) Feb 23, 2018 10:12 AM|
Buy from Retiring LL (by Richard [MI]) Feb 23, 2018 10:49 AM
Buy from Retiring LL (by Landlord ofthe Flies [TX]) Feb 23, 2018 11:32 AM
Buy from Retiring LL (by Sisco [MO]) Feb 23, 2018 11:34 AM
Buy from Retiring LL (by Robert,OntarioCanada [ON]) Feb 23, 2018 1:12 PM
Buy from Retiring LL (by MMIT [VA]) Posted on: Feb 23, 2018 10:12 AM
I talked to an older landlord today who wants to retire. He is having health problems and realizes he needs to do something with the properties.
His family is not interested in keeping the properties. He does not want his family (wife and kids) to have to deal with the properties when he is gone.
He has 15 properties in C+ neighborhoods.
He has had these properties for 15-20 years.
His plan is to sell a couple properties a year thinking that will be a good way to minimize taxes.
What is the best way for him to sell his inventory to maximize his profit and minimize his taxes?
What is a good win-win situation for both the buyer and seller?
Buy from Retiring LL (by Richard [MI]) Posted on: Feb 23, 2018 10:49 AM
Just my opinion here - let his heirs inherit them then they call a real estate agent and sell after he is gpne. This, I think, allows them to use the stepped up basis to calculate taxes. If he sells now, he will pay cap gains tax on the gains. Could be very substantial.
Buy from Retiring LL (by Landlord ofthe Flies [TX]) Posted on: Feb 23, 2018 11:32 AM
Richard has a point. Check with your accountant to see if having him finance the loans would change things. If he finances them to you and you just pay a downpayment, it's considered an installment sale and he owes taxes on what's received. Once he passes, his notes are taxed at a stepped basis depending on the value of the entire estate. Plus he receives income to displace the lost rental incomes. Then, when the estate is valued, and if it's under $5M roughly, the family will owe no estate tax. Check with accountant or have him do it.
Another way to go around it, is that you buy an option to buy on all his properties so that you can lock them up so that he or the estate can't sell them later to someone else. Then work with him, exercising those options by buying a certain number of houses each year. You could then buy the remainder of the houses after his death and that would be taxed on stepped basis as mentioned above. Be sure to file the option with the county so it shows up in title search. See lawyer for that one. --108.69.xxx.xxx
Buy from Retiring LL (by Sisco [MO]) Posted on: Feb 23, 2018 11:34 AM
MMIT, if you are interested in acquiring these houses a lease with option to purchase will give seller more ways to minimize taxes than will a sale.
Could something go wrong with a L/O? Yes. Could a L/O be a win win? Yes.. --72.172.xxx.xx
Buy from Retiring LL (by Robert,OntarioCanada [ON]) Posted on: Feb 23, 2018 1:12 PM
If the present is willing to do a vendor take make mortgage then could set up paying weekly where more equity is paid every year. Taxes have to paid but can do write off some of the repair, capital expenditures. It is never easy but over time with careful management things can be improved. Consider joining a landlords association where can get more specific local advise. Google to find. --206.108.xxx.xxx