Ron’s on vacation this week, so his mentors, the Dumires, are filling in! This week’s Ask Ron is filled with great questions about that big non-refundable option deposit we keep upfront, finding the homeowners of vacant houses and much, much more!
An interesting question this week dealt with taxes. With a subject-to deal where the property tax and insurance escrows are in the previous owner’s name, not the tenant-buyer, who gets to write it off? Watch and find out!
Still have a question? Submit it to Ron through the Ask Ron forum!
Good video guys. Thanks for filling in.
Thanks for covering for Ron, great info. Enjoy your vacay
I’m not clear on the response to Derrick’s question about who gets the write-off for the taxes. I understand the “owner” gets the write-off but if it is a subject to, the tax forms are going to go to the mortgage holder, not me. What would stop the mortgage holder from claiming the deduction? And if I claim it where is my back-up documentation in case of an audit?
The tax deduction question was answered by referring you to a qualified tax professional. The answer is it depends! If you use a land trust both parties “might” be able to claim the deduction based on beneficial interest and knowledge of the tax law. Do NOT bypass the use of a qualified tax professional in an effort to “save” money. I found my CPA at my local REIA group. My CPA pays for himself.
More ExSELLent advice………thanks you two.
Great info. Love the Dumires. Tx.
Kristine, Kevin is correct in saying ask your accountant, but, I remember Ron posing this question to a seller, ” would you rather lease your house or sell it?”. It’s my understanding the reply sell it made it a subject to deal, and lease it made it a lease purchase deal. If I’m correct, you get the tax benefits and the depreciation benefits on the house. Correct me if I’m wrong.