Help! I Need Help Writing A Real Estate Invest Business Plan
I Need help writing a real estate investment business plan for commerical properties such as an apartment buildings.....Please help does anyone have a sample business plan that I can use as a guide.
I have tried using Business Plan Pro 2007, but have become stuck due to the hit and miss nature of the deal.
In order to secure some larger $$$ deals I need to get back to it.
Looks to me like it went something like this:
Sales price 126,000
Less: Cost (47,000)
Seller concessions (25,000)
Depreciation? ( 3,000)
---------------
Capital gain 51,000
Seems about right to me. The mortgage balance is irrelevant. If it was 66k I assume you either took money out or had a negative amortization loan.
[ Edited by finniganps on Date 04/13/2007 ]
Sold for $126k, gifted $25k= $101k; mortgage payoff $66k= $35k, you got $24k= $11k.
What happened to the $11k? Pretty high cost of sale.
I suspect you are being taxed on $101k - $47k = $53k minus cost of sale, plus depreciation recapture.
Chris
What kind of property are you asking about? Is this a duplex, two unit flats, or are you just sharing your house with a roommate?
More details please.
Hi, I have the same basic question as Scott. I have a 2 story hill side ranch where I rent the downstairs apartment. Should the expenses be split 50/50 or is it based on sq footage? would it be a good idea for taxes to form a corporation to "manage" that apt as a business?
Thanks,
Patrick
Thanks srj1972,
That information was very helpful and it was exactly what I was looking for. Thanks again.
I think that was Newkid- right on target with helpful information, as always...
Chris
What did your AGI consist of? Wages, investment income, Real estate? If it is all wages, then no, your CPA is correct, you cannot take the losses this year.
Quote:On 2007-04-12 11:20, finniganps wrote:
If you materially participate in the rental (ie. screen the tenants, collect the rents, etc.)
Just to clarify,
"Active" participation is required to qualify for the net passive loss allowance. "Material" participation has a different meaning in IRS jargon. Material participation is not required to qualify for the net passive loss allowance.
Yes, to both of your questions.
excellent, thanks finnigan!