Posts Tagged ‘advice’

Question: Need advice from one who seriously knows Taxes regarding Real Estate Investments?
Bought a “fixer upper” house (SC, USA) in 2008 and live in it now. I know I have to wait 2 yrs to sell if I don’t want to pay taxes at all. I’d like to sell it now though.

If it is my ‘personal” residence and I sell now, then I cannot deduct repairs etc..maybe only “improvements” but not paint or repairs for sure.

Now I live in a vacation spot, so if I go on my own vacation and rent this out for a week or two in Nov. & Dec. Does that then turn my ‘residence’ into an ‘investment’ property so I can then deduct those things so I can pay less tax on my profit?

We knew we would flip it but really thought we’d stay 2 years so we got a normal homeowner loan, not an investment loan. We have to prove to the IRS that we meant it as an investment to deduct these things. We did mean it, but since we did not get an investment loan I think the only way to go is to actually rent it out. But I only want to do that if it would definitely work.. Or would that just make it a 2nd home?

Would this work? Thanks for your expertise!
Ok, so I found out I can’t do that.. how can I prove I meant to flip it? I guess the tax law is all about “intent.” I need to sell it now, not after 2 years, so what CAN I do to prove intent?

Answer:

Answer by Sharon T
How much profit are you talking about here? What tax bracket are you in? If your income isn’t high, you may be in the zero bracket for long term capital gains. Just be sure you have held it a year before you sell it.

Calculate the tax if you are in the 15% bracket and decide if you are willing to wait the two years to avoid paying that tax.

This is a time when you may be wise to seek counsel from a good tax preparer who can help you pencil out the consequences.

by PB-PSBear

Question: Advice from someone who seriously knows Real Estate Tax Please.. Need to make home ‘investmt property’?
Bought a “fixer upper” house (SC, USA) in 2008 and live in it now. I know I have to wait 2 yrs to sell if I don’t want to pay taxes at all. I’d like to sell it now though.

If it is my ‘personal” residence and I sell now, then I cannot deduct repairs etc..maybe only “improvements” but not paint or repairs for sure.

Now I live in a vacation spot, so if I go on my own vacation and rent this out for a week or two in Nov. & Dec. Does that then turn my ‘residence’ into an ‘investment’ property so I can then deduct those things so I can pay less tax on my profit?

We knew we would flip it but really thought we’d stay 2 years so we got a normal homeowner loan, not an investment loan. We have to prove to the IRS that we meant it as an investment to deduct these things. We did mean it, but since we did not get an investment loan I think the only way to go is to actually rent it out. But I only want to do that if it would definitely work.. Or would that just make it a 2nd home?

Would this work? Thanks for your expertise!

K
Ok, so it sounds like Judy is right.. I have sold 2 other investment properties (that do pass the test) in 2009… so we do have a history of being investors. Those investments went poorly (house in MI) Is there any other way to prove we intended to make this an investment? I’d like to balance out the books with a profit here.

Also can I possibly offset my loss their with a profit here next year? Or do I have to keep deducting 3k/year on my schdedule K (I think that’s the right letter)

Answer:

Answer by Judy
You can’t turn it into “investment property” with a week or two of renting it out – and you’d have to have not used it yourself those years except for a minimal time. And anyway, you could only deduct the repairs AFTER it’s rental property.

Question: Any licensed estheticians have advice for male beard care?
I always wear stubble (like “House MD”) or a full beard (like Al from “Home Improvement”). I’m presently sporting a full beard.

I can’t shave because I get painful boils if I do. Growing my facial hair out is the only way to effectively prevent and avoid them.

I shampoo and condition my beard, and keep it well-groomed, but I have one small problem, the skin underneath gets dry. How can I moisturize my underlying facial skin without cutting or shaving my beard off and without getting my facial hair all gooey?

Answer:

Answer by A Bit Of Bliss Day Spa, AZ
For the first part of your problem:

Have you tried washing with a salycilic face wash when you shave and using a salycilic face tratment? Its made for acne, but it can work miracles for ingrowm hairs and other problems related to facial hair removal.

To answer your question. Sporting a beard, you should not have dry skin in the beard area. The beard acts as a natural barrier over the skin and keeps moisture in, especialy after a shower when your beard is wet. To tap into your beards natural abilities, you may want to use a pure hyaluronic acid gel. Hyaluronic acid occurs naturaly in the skin and is a humectant (draws moisture from the air). You can easily find this, just make sure it is mostly hyaluronic acid, without all the additives.

Your skin is probably dry due to using shampoo and conditioner on your facial areas.

Shampoo often contains sodium laurel sulfate or sodium laureth sulfate. BOTH are irritants, and terrible on your scalp, let alone your face! Propylene Glycol is often used as a humectant, but it is also an irritant.

While it is not appropriate to use shampoo or conditioner on your face, it IS appropriate to use face wash and moisturizer on your facial hair. My advice would be to begin using a natural face wash like Burts Bees. They also have good moisturizers like the radiance night cream.

If you want to use a professional brand, I suggest cosmedix. If you are going to shave use the Purity Clean, if you are not going to shave use the Benefit Clean. I couldnt suggest a moisturizer as I dont know your exact skin type, condition, or age. Since its more of a medical line the products do actual WORK on your skin (like stimulate sebaceous glands, or slow them down). The website can direct you to a dr or spa that carries the line.

Freezers require care and maintenance for both efficiency and safety. Make sure to read all manufacturers instructions to ensure proper installation and use. To keep your upright or any kind of small freezer running properly, there are some important issues you need to take care of

First choose a cool dry room, above 40 degrees Fahrenheit, for your unit. This will allow the freezer mechanism to run at its best. Watch out for your heat sources in home and put freezer away from them. The best example for this is to not put your home greezer near a heater. You should place your freezer at the place that doesn’t get any sunlight during the day

When you put your freezer at the place you want it, be sure that it is leveled. Your doors will close and open properly at all time if you do this. You can do one more neat trick by tilting the upright freezer away from the front which will help the doors to close easy.

The door seals should be cleaned often. One of the most important factors of keeping the cold temperature is the tight seal. Position the chest freezer with adequate air circulation on all sides. The heat generated by the freezer and the heat from inside must be dispersed by the appliance itself. The freezer will definitely have to work harder if the circulation is limited.

Putting more content in your compact freezer makes him even more efficient. You will save power if you fill your freezer as much as possible, leaving him empty costs you more power. Don’t wait for more then a year to defrost yuor freezer, you should do it more often. Defrost more often if the frost builds up to more than half inch.

You should not leave the door open for long periods of time. One tip that will keep the cold inside your freezer longer is the list of the things you want to remove or put inside. Use pen and paper that are always near the appliance so you can track what you are taking or putting inside the unit.

These few guidelines are enough for you to keep your freezer running perfectly for a long time. Just stick to these tips and guidelines and you won’t have even a minor hassle.