From the desk of
Attention Real Estate owner occupiers!
You are wasting your money!
Call Rick Gomolka to save the baby when you throw out the bath water!
Did you know if you have owned your primary residence for 5 or more years, you could have turned it into an investment property for three years and sell it today without paying taxes on the first $500,000 gain if you are filing married jointly or $250,000 if filing single head of household?
Did you know any repairs you do to your home while you are living in your home with few exceptions (lead paint, new windows, insulation and capital improvements are tax deductible up to certain limits) are not tax deductible to offset you income?
Did you know you can deduct home repairs and improvements for your tenants?
Have you figured out where I am going with this?
If you were beaten up by the past recession or lost your job a while ago, or just a savvy money machine and are ready to make a move but you need your down payment to come from your home equity, but realize you have to sink in lots of money to make the most of your return on investment, do I have a money saving or investment opportunity solution for you!
Here is a reason to rent for a while, or buy a second home if you can swing the payments and have a down payment.
Lets say you need a new roof, a new furnace or you are the end of the life on the 20 year old hot water heater that you should have replace 8 years ago. Maybe your kitchen is tired or bathroom says yuk!
Here is the funny thing. Most property owners who have not kept up with the maintenance of their home might have lucked out by delaying!
If you move out, spend the money you were going to anyway for the upgrades and then rent the property out for 2-3 years you can take the tax deduction!
Then you can sell or move back into the property!
Thats right all legally tax deductable!
IRS TAX REGS CLICK HERE
You can see the details or ask your tax or real estate attorney for advise!
So when you read all those articles that say, only paint gets you a one-for-one return on investment, you really need to talk to us for advise!
After you renovate, rent out for at least 50 weeks (confirm with your accountant!)you can CLOSE on the sale on the 51st week!
You see the IRS says you cannot live in your property for more than two weeks in a year to be able to qualify for an investment property
It does not mean you cannot fix up the home, rent it out with the new tenants having a tenancy at will lease with 30 days notice with the understanding you will be selling the home and closing on it no earlier than in 11 and 1/2 months
That means you can move into your second house, and the clock starts all over again! As long as you have owned the second house for three years, THEN make it your primary residence for more two years, then sell it and you avoid the gains for the next
$500,000 if you are married filing jointly or $250,000 if filing single head of household.
You may have extenuating circumstances as well that could benefit you. It is a real specialty in the tax code. Confirm this all with your accountant or tax attorney! If they say you are good to go and gave you the legal implications We can help you!
Any way you look at it, you are giving yourself a raise by up to $500,000 TAX FREE every two to three years! WOW!
So now I have to talk to my wife and convince her to rent out our house!
I need to share one more thing with you.
My personal motto is a Latin phrase "Semper paratus" or "Always ready!" and you should be too for us to help rent or sell or buy your home!
Ring me or Click me when you are, then Start Packing!