How do I stay out of trouble with the IRS
I was recently laid off from my job because of cut backs after my wife and I just had our first child. We just bought our first home and I have no job. Well here is the question my wife had a home before we married and I also had my own home as well. After we got married we bought another home together using just my wife information because I had already been informed that there was going to be a big layoff. The home was a foreclosure and needed some work. Our current loan amount $100.700 the home was appraised at $129.000 and two of the neighbors are moving and they both are selling for $165.000. We have only owned the home for 4 months and sense I am out of work I have been doing the repairs my self. We need some extra money because I am out of work so we would like to sell the home ASAP. But we do not want to get into trouble with the IRS because we might make a profit and don=t if that will be a problem with the IRS we don't know where or how to start. I would greatly appreciate any help.
I would like to do this full time but I have got to educate myself on the tax and business laws in my state.
Richard:
Welcome to the TCI Family!
I think you should not have a problem if you hold your property's Title in the name of a Land Trust and SELL OWNER FINANCING through the Land Trust.
By 1st Getting 10-15% DOWN then waiting a couple of years (check w/your Tax Pro) B4 Transferring the Title
You can ENJOY TAX FREE CASH OLA (10 to 15% of $165=$16,500 to $24,750 ) IN HAND from your Buyer(Tenant)
Also The Buyer can get immediat TAX BENEFITS by owning 10% Interest in the Land Trust which owns title to the Property.
You will have a SAFTEY NET in case the Buyer doesn't pay (set aside 5% to 7% of the Buy In Monwey they put DOWN).
If either YOU or the BUYER goes BANKRUPT, or DIVORCE ACTIONS, or Even IRS TAX ISSUES---the Land Trust TITLE TO THE HOME IS SAFEGUARDED from LIENS(Creditor/State and FED.)
By properly setting up your Land Trust your IRS TAX EXPOSURE for not living in the home can be LEGALLY DELAYED using the above method.
If you are interested private Message me here on TCI and I'll get back to you right away!
DERRICK ALI
[addsig]
Thanks Derrick!!
Hi Derrick,
Would you explain what "SELL OWNER FINANCING" means please.
This sounds very interesting. I'm new to this and I'm just trying to learn as much as possible.
Thanks,
Alex