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Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2603
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Customer Question

Is this a pop up or is a real person monitoring this?
Submitted: 10 months ago.
Category: Finance
Expert:  emc011075 replied 10 months ago.

Hi John. Yes, there's a life person most of the time. How can I help you.

Customer: replied 10 months ago.
Will my question be published for anyone to see?
Expert:  emc011075 replied 10 months ago.

Yes. This a public forum. Our conversation is public but your identity is not. Your personal information are not revealed.

Customer: replied 10 months ago.
Ok...here's the deal. I purchased a short sale multi family apartment building for $70k Jan 2016. The idea was that my cousin was going to renovate and rent the units...I was just the initial money man. He got sick, I had to hire a company to renovate. It costs me $130k. Now, I have to decide to sell the building (probably $175k) at a loss or let someone else manage it for me. I have a one person LLC. I've thought of moving the building to the LLC
Customer: replied 10 months ago.
I have $200k in the building. Tax wise is it better to take the loss...I have stocks I can sell to absorb part of the lossOr, transfer property to LLC with mortgage of 200k, add additional member who wants to share in monthly earnings and future profite?
Expert:  emc011075 replied 10 months ago.

Moving the building into LLC will not make any difference on your taxes. Single member LLC is disregarded entity for tax purposes, not a separate entity like a corporation. If you sell it with a loss you will have short term capital loss that will be limited to 3K per year. You can use the loss to offset other capital gains. Unless you are in business flipping or renovating houses, you cannot deduct it as business loss.

If you turn it into rental property, you will be able to deduct rental losses (rents - operating expenses), but the value of the property - 175K will have to be depreciated - recovered over 27.5 years.

Customer: replied 10 months ago.
I'm not able to explain using this iPad...I need to get to my computer...will be back on soon
Expert:  emc011075 replied 10 months ago.

No problem. I am currently in CT so we are on the same time zone. I am usually online until 10pm.