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Spur08

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Posts posted by Spur08

  1. 2 hours ago, Smax said:

    Born and raised Texan Houstonian, always called them kolaches, never heard the word klobasnik till someone said it on shag

    I only hear Houston folks call them kolaches.

     

    THIS is a kolache

     

    Kolaches-29.jpg

    • Hook 'Em 1
    • Like 2
  2. @TwiceHorn  I have a mobile mechanic who is the shit and very reasonable.  If he buys the parts for you, he'll transfer his cost to you.  I usually buy my stuff off RockAuto before he comes out and he has no problem with it.  If anything sucks about him, it's that he can be tardy if you schedule late appointments.  I usually go for the early morning on the days I work from home.

     

     

     

    ae82ffac34a3fa7bc62bea9f56b20842.jpg

    • Like 1
  3. 21 minutes ago, Jhawk said:

    I want to be clear, they will have a tax bill on any gain.  I was using $500k as an arbitrary number.  If they bought the house for 100k and sold it for 110k they will have a 10k gain that will be subject to 22% federal capital gains tax and then texas tax (whatever that is) on top of that.

    I don't believe that's correct.  This is what he will be doing to qualify for exemption: https://homeguides.sfgate.com/age-can-person-sell-house-tax-exempt-39903.html

    That's just a general link but was discussed upthread.

     

  4. I agree with the bulk of your statement, especially about my brother as that is his personality.  I could bitch about that fucker for days but that's not the point of this thread.

     

    Parents could buy the house in cash now.  They're selling the house for <$500K so they won't have a tax bill regardless.  But, if they needed to move again within 5 years to a home or something (not expecting that) then the cash out option would no longer be available.  

  5. 25 minutes ago, CO Horn said:

    That would probably work, but doesn't change the fact (IMO) that he can't purchase your parents' home as replacement property.

    Hm..maybe we're not on the same page.

     

    Folks are selling their home to someone else.  Brother is selling rental house to someone else and buying (1031) a new home for the folks.  Folks pay rent for year or whatever, then "buys" the home from brother at the remaining balance of the mortgage (dad will pay it off completely).  Brother 1031s to vet building.  From what I read in that link above, it's allowed as long as certain conditions are met.

  6. 19 minutes ago, CO Horn said:

    The issue is not with your parents selling the property, it is with your brother buying the property.  Even if he could do it, he would have to pay tax on the gain when he sells it back to them in a couple of years, unless he did another 1031 exchange.

    Right.  Which he plans to roll into when they (him and his wife that he doesn't know if he likes) open their own vet practice.  They will, or plan to, buy a property to do this.

     

    Don't get me wrong.  I am vehemently against this but, to my dad, he's just trying to help out one of his kids.  In my opinion, my brother has put himself as priority #1 during their housing transition process.  I've run out of things to throw at this deal to break it up so we'll see.  My dad tells me if the deal gets fucked and there are [IRS or other] repercussions, then it's all on my brother.

  7. Oof, your brother sounds like a beating.
    This isn't the half of it. Almost 40 year old who is the most self centered person I know. He's a pro at making his problems everyone else's problem.
    In Texas, even absent commingling, capital growth remains separate while income from a property is community.  If you plow the income back into an investment, you have commingled, but an attempt can be made to back the income out in the event of divorce.
    He says that all upkeep was paid via rental income that was maintained in the LLC (separate) acct
    http://www.exeter1031.com/1031_exchange_related_party_issues.aspx
    Yep, can’t do it. See acquiring property from a related party. 
    From what I'm getting from this, it can be done as long as certain stipulations are met.
  8. Bear with me while I set the scene.

    My folks are planning on moving out of our childhood home and moving a little closer to me, my brother, and their grandkids. 

     

    My brother does some real estate transactions through a LLC that he opened/owned pre-marriage.  He owns a rental property in Fort Worth that was purchased pre-marriage.  He claims that it has been maintained post-marriage by accounts within the LLC that have always been separate.  This month, he is selling the rental property for a profit.  One question I have is when, if ever, does this account or its assets become community property?  No pre-nup in their marriage.

    Transition back to the folks.  My brother has convinced my parents to let him 1031 exchange the profit from the rental property into buying their home so that he can avoid paying cap gains.  After a year, my parents would then buy the property back from my brother as both my parents head into retirement.  My brother believes, at that time, he and his wife will be in a better position to open their own vet practice and wants to use that rental property money for doing just that. 

     

    Personally, I have a lot of issues with this and I’m trying to educate myself on the disadvantages of this approach.  First, my brother’s [second] marriage is not a strong one.  He has mentioned to me over the weeks how he thinks he would be better off financially with a divorce.  As such, one concern I have is whether or not the home my parents will be living in will be safe/secure if my brother was to go through a divorce at that time.  Second, are there any tax disadvantages for my parents or my brother in using this approach?  It seems like an extremely convoluted and complex way to avoid paying cap gains for a year and this money is going to end up in a community property destination anyways.

  9. I've read zero of this thread so I don't know if any of it is addressed previously.  I love Witten but, damn, his physical presence is painful to watch.  He's nervous, can't make eye contact, etc.  The verbal call isn't bad but I cringe when I see him on screen.

  10. Slight transition of topic but I didn't want to make a new thread for it.  This weekend I saw an article that Fidelity has created 2 fee-free funds with their new Fidelity Zero Total Market Index  FZROX Fund and Fidelity Zero International Index Fund FZILX.  The folks over at Bogleheads are saying that they have also slashed the fees on their mutual funds but I have not  yet confirmed.  The race to the bottom by Fidelity and Vanguard sure has been great to watch.  It will be interesting to see what Vanguard's response will be.

     

    https://www.fool.com/investing/2018/08/12/intels-internet-of-things-business-was-outstanding.aspx?fs_test=True

    https://www.nytimes.com/2018/08/10/business/fidelity-mutual-funds-fees.html

    https://www.bogleheads.org/forum/viewtopic.php?f=10&amp;t=255356&amp;start=600

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