What are the benefits of forming a corporation with my children as shareholders and putting my residence as the sole asset of that corporation, especially ipon my death?
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Without getting too deeply into the legal aspects which will vary with your financial status and your state of residence, let me say that in general, a trust would usually be better.
Less administration, more privacy, and better tax treatment.
But you should consult a knowledgable financial planner / attorney for your best answer.
Corporations can drastically lower taxes (as compared to an LLC). Not just SE tax, but also the tax-free perks the Corporation can write-off by providing to its Officers (and employees for larger Corporations). Wiz, why not have a Limited Family Partnership hold the S Corp stock?
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And your question has what to do with a lost check? Off original subject, you should have started a new post- but:
In most states, if not all, a real estate agent must work under a broker unless doing deals on his own behalf; in other words, deals in which you are a principal. I am surprised you were able to get a license without knowing this.
The broker will generally take 50% of the commission on the first million dollars or so of deals, after which your cut should increase. You will also generally pay desk fees, E&O insurance, MLS fees, NAR memberships, etc. etc. etc. adding up to about $300 a month. However, some brokers take no commission when recruiting top agents, relying on income from their title company and various fees multiplied by the agents high volume to make their money. It is totally up to the particular broker you work under.
Yes they can. Just like you can raise the rent after the lease period. But neither party has to accept. It is fair if it is done correctly. Evidently HUD has taken a survey of the area and found the average rent now is less than you are charging. Unless you can prove they are wrong in their appraisal of rents there is not much hope. This is done to be fair and it does not end up like the military spending $200.00 for a $5.00 hammer.
You should try to find some comparables and explain why your place should rent for more than average or it is the average for your area.
It is not common but rents can go down in some areas. Often you will see this when minorities move into a neighborhood. With the increase crime rate, lower standards and single mothers the area deteriorates and real estate values and rents decline.
Your lease is with the tenant. Your lease does not state where their money is coming from. If Section 8 decreases what they pay, then your tenant must pay more. It is not your problem.
Forget it. If rents are within $150 of market, you will get the lowered rate. Sec 8 did that to me once, your side of the lease means nothing, and you can not charge the renter the difference. Their portion is fixed by Sec 8 and you cant mess with it. Forget about moving the tenant also, they usually cant afford to move. But look at the bright side, its steady cash and they pay on time, even if the dishwasher breaks. Normal tenant would be trying to get rent deductions.
Yes all the rents for that market rent area would have to be lowered at renewal unless they are already at the lowered price.
Also it is rare that Sec.8 will allow a tenant to pay the difference.
I myself am getting away from Sec.8 due to all the problems you sometimes have. Always either a problem with tenant or the office.
But I would at least take the gamble and stick with your rent amount. When it comes down to it they sometimes will make exceptions. Even better if you could submit a few comps showing your rent is average.
Let your tenant handle this if they want to stay. Tenant goes down to office and complains she cant find anything else for less rent.
Also even if you do have your own lease with the tenant you still have a seperate sec8 lease that you have to honor. It would be fraud if you tried to work something on the side and have tenant just pay the difference. You would not want this to come up if you ever had to go to court over a tenant for another reason.
I am very familiar with other property managers in my neighborhood, I did ask around if anybody got a decrease, the answer was no, therefore I feel that they did discriminate against me, and I am going to let them know if they could not prove that all property owners got the renewals decreased, I will filed a lawsuit against them.
They did not have to decrease everyone if they were already lower at market rent.
You can try to fight this if you are only wasteing free time you have.
Otherwise dont expect a Section 8 office to act professional or fair. Most of time it is run by the same type of people as the sec 8 tenants.
Had one that did 4K in damages. Local office stopped her section 8. She appealed and won. The hearing officer only reason was she stated she felt sorry they had no place to go. I could not fight this because thier rules and laws allow them to decide like this. The appeal hearing officer had the final say no matter if it was right or wrong.
So sounds like she got pissed off at you for complaining or causing her more work. And this is the way she got back at you.
Good example of what I meant by them being unprofessional.
That also would be enough for me to at least go above her. To get extra attention do what they do and claim reverse discrimination or discrimination, whatever the case maybe
We are talking about $34 a month, we have a lot of properties section 8 with that department, therefore it’s not easy for us to say do not deal with them anymore, the problems which we have with section 8 is much more simple as to deal with tenants in that area non-section 8.
Without getting too deeply into the legal aspects which will vary with your financial status and your state of residence, let me say that in general, a trust would usually be better.
Less administration, more privacy, and better tax treatment.
But you should consult a knowledgable financial planner / attorney for your best answer.
the canned answer I was told is never hold an appreciating asset in a corp.
I have seen family limited partners done. Mostly I have seen estate planning dealt w/ via a living trust.
What benefit do you hope to gain?
In CA that corp would cost 800/yr just to sit there
Corporations can drastically lower taxes (as compared to an LLC). Not just SE tax, but also the tax-free perks the Corporation can write-off by providing to its Officers (and employees for larger Corporations). Wiz, why not have a Limited Family Partnership hold the S Corp stock?
[addsig]
And your question has what to do with a lost check? Off original subject, you should have started a new post- but:
In most states, if not all, a real estate agent must work under a broker unless doing deals on his own behalf; in other words, deals in which you are a principal. I am surprised you were able to get a license without knowing this.
The broker will generally take 50% of the commission on the first million dollars or so of deals, after which your cut should increase. You will also generally pay desk fees, E&O insurance, MLS fees, NAR memberships, etc. etc. etc. adding up to about $300 a month. However, some brokers take no commission when recruiting top agents, relying on income from their title company and various fees multiplied by the agents high volume to make their money. It is totally up to the particular broker you work under.
Yes they can. Just like you can raise the rent after the lease period. But neither party has to accept. It is fair if it is done correctly. Evidently HUD has taken a survey of the area and found the average rent now is less than you are charging. Unless you can prove they are wrong in their appraisal of rents there is not much hope. This is done to be fair and it does not end up like the military spending $200.00 for a $5.00 hammer.
You should try to find some comparables and explain why your place should rent for more than average or it is the average for your area.
It is not common but rents can go down in some areas. Often you will see this when minorities move into a neighborhood. With the increase crime rate, lower standards and single mothers the area deteriorates and real estate values and rents decline.
Your lease is with the tenant. Your lease does not state where their money is coming from. If Section 8 decreases what they pay, then your tenant must pay more. It is not your problem.
Forget it. If rents are within $150 of market, you will get the lowered rate. Sec 8 did that to me once, your side of the lease means nothing, and you can not charge the renter the difference. Their portion is fixed by Sec 8 and you cant mess with it. Forget about moving the tenant also, they usually cant afford to move. But look at the bright side, its steady cash and they pay on time, even if the dishwasher breaks. Normal tenant would be trying to get rent deductions.
Yes all the rents for that market rent area would have to be lowered at renewal unless they are already at the lowered price.
Also it is rare that Sec.8 will allow a tenant to pay the difference.
I myself am getting away from Sec.8 due to all the problems you sometimes have. Always either a problem with tenant or the office.
But I would at least take the gamble and stick with your rent amount. When it comes down to it they sometimes will make exceptions. Even better if you could submit a few comps showing your rent is average.
Let your tenant handle this if they want to stay. Tenant goes down to office and complains she cant find anything else for less rent.
Also even if you do have your own lease with the tenant you still have a seperate sec8 lease that you have to honor. It would be fraud if you tried to work something on the side and have tenant just pay the difference. You would not want this to come up if you ever had to go to court over a tenant for another reason.
I am very familiar with other property managers in my neighborhood, I did ask around if anybody got a decrease, the answer was no, therefore I feel that they did discriminate against me, and I am going to let them know if they could not prove that all property owners got the renewals decreased, I will filed a lawsuit against them.
They did not have to decrease everyone if they were already lower at market rent.
You can try to fight this if you are only wasteing free time you have.
Otherwise dont expect a Section 8 office to act professional or fair. Most of time it is run by the same type of people as the sec 8 tenants.
Had one that did 4K in damages. Local office stopped her section 8. She appealed and won. The hearing officer only reason was she stated she felt sorry they had no place to go. I could not fight this because thier rules and laws allow them to decide like this. The appeal hearing officer had the final say no matter if it was right or wrong.
So sounds like she got pissed off at you for complaining or causing her more work. And this is the way she got back at you.
Good example of what I meant by them being unprofessional.
That also would be enough for me to at least go above her. To get extra attention do what they do and claim reverse discrimination or discrimination, whatever the case maybe
how much $$ are we talking about? $5? $50? a month?
It sounds like getting out of the Section 8 biz is what you really should do.
We are talking about $34 a month, we have a lot of properties section 8 with that department, therefore it’s not easy for us to say do not deal with them anymore, the problems which we have with section 8 is much more simple as to deal with tenants in that area non-section 8.