[QUOTE=Bernie Lomax,Dec 2 2004, 08:33 AM] The trust provides some anonimity to you.

 

Off topic a bit...

How did some of you come up with the funds for your first rental property? Just curious.

Monopoly anyone?

 

in my wonderfull area (central Pennsylvania) you used to be able to find decent houses that need some minor work for $15k.... so I paid $10k cash, then another $5k of fixings (we paid people and did nothing ourselves....dumb...).... then we got a loan from a credit union for $24k (80% of $30k appraisal).......... then i spent most of the additional $4k on some TE37's & tires and an HKS for my S2000...

 

I bought a condo for $119,900 in 2002. Put about $12k into it, all my own labor, lived in it for 2+ years and sold it in 2004 for $222,500. No capital gains, all profit.

 

isn't that an awsome tax law.... too bad I have kids and like to stay in one spot.


For those who don't know.....

You can make up to $250k (single) or $500k (married) tax free (federal taxes only....not sure about state) on your personal residence if you have lived there for 2 of the last 5 years.

Consult your tax advisor for more specifics..

 

[QUOTE=Bernie Lomax,Nov 30 2004, 08:14 AM] I am buying 2 out of 3 units in a new condo conversion building.

 

isn't that an awsome tax law.... too bad I have kids and like to stay in one spot.

Oh I love it. We were recently married and plan to do the same thing on my wife's place that we live in now. She will have 2 years in July. Married filing separately.... cha ching.

 

The only problem with disposing of property within an LLC is that when you take the profit out its taxed as personal income, not capital gains. I'm not familiar with trusts, but I'm thinking your accountant knows of some tax advantage related to trusts.

I'd never put my personal assetts at risk, even with insurance. Insurance companies can screw you big time.