Please hit the LIKE button for this video and this comment!!! Thanks so much for watching!

Thanks for the video. I've never seen anyone explain the tax implications of a flip. On TV it's often purchase price minus sales price and voila! Lol

@KentonKnows

3 жыл бұрын

Yeah, it always annoyed me that on the tv shows they made it seem so easy to make so much money. thanks for watching and leaving a comment.

Thank you. You are so thorough!

Good Video Kenton, Would like to see a video based on taxes after buying, fixing, and holding for a year!

@KentonKnows

2 жыл бұрын

That's a great idea, I'll add it to my list and try to put that one together, thank you for the suggestion.

This is a beautifully explained video.

@KentonKnows

3 жыл бұрын

Thank you so much, I'm really glad you liked it!

Great job in breaking this down.

@KentonKnows

3 жыл бұрын

Thanks - it is definitely a lot more complicated than the TV shows make it out to be.

Great video Kenton. This was very informative throughout the entire process. I have not seen someone carry it out to this degree. One method I heard of for flipping was the 70% rule. You take the ARV*.70 - expected renovation costs as your offer on a flip. This needs to be analyzed as you describe in the video though.

@KentonKnows

3 жыл бұрын

I really hate rules of thumb for making any actual decisions - great for telling you if it qualifies for you to take the time to actually do the analysis, but bad for making a decision from. If we use the example in the video, with this rule, you would walk away or offer less for the property you could sell at $200k. However, if you could sell it for $250k, using the rule you would offer $250k * .7 = $175 - $20k = $155k, so $5k more than I had in the example. So in this case the rule works and as long as you are fairly confident of your numbers, you can make some money as long as the holding period isn't too long, you don't use hard money and your costs don't go higher etc. Lots can go wrong, but the rule seems to be reasonable at this price point.

hit the LIKE button and smash it hard. love this kenton.

@KentonKnows

3 жыл бұрын

Thanks so much!!!

Salute to you. We appreciate your time and hardwork

@KentonKnows

Жыл бұрын

Thank you!

eye opening, thank you!

@KentonKnows

2 жыл бұрын

Thanks for watching and commenting

Great news

@KentonKnows

3 жыл бұрын

Thanks, you are welcome!

Excellent video. Thanks.

@KentonKnows

3 ай бұрын

Glad you liked it!

Nice video Kenton!

@KentonKnows

2 жыл бұрын

Thank you!

Interesting information! Thanks

@KentonKnows

Ай бұрын

Glad it was helpful!

Nicely explained

@KentonKnows

3 жыл бұрын

Thanks so much, glad you liked it!

Great video 🙏🏻.

@KentonKnows

2 жыл бұрын

Thanks for watching and commenting

What advice would you give for trying to buy a rental during the eviction ban? Can you get around it by doing month to month, having tenants pay weekly like an extended stay hotel, or wait until eviction ban lifts?

@KentonKnows

3 жыл бұрын

First, I don't recommend ever trying to get around a law - it will end badly. As far as advice on how to protect yourself, you just need to screen your tenants well. I would simply raise the minimum credit score requirement. Tenants with high credit scores have normally worked hard to get the score and will work hard to maintain their score. So, if you require a 700 or higher credit score you shouldn't have any issues. You can also ask for more rent upfront, but that still won't protect you as much as a tenant with a great credit score would - in my opinion.

💯

Where can one get a spreadsheet to plug all of the numbers into? Thanks

@KentonKnows

3 жыл бұрын

Sorry, I don't have a spreadsheet I can share, but I do have the assumptions, links and calculations in the description of the video.

by c. crid

@KentonKnows

3 жыл бұрын

not sure I understand the comment, but thanks for watching!

I'm in Illinois as well, profit is 55 on 262 price. Is there anyway too avoid the taxes?

@KentonKnows

2 жыл бұрын

You’ll need to talk with a CPA who specializes in real estate. There is a big difference between being classified as a real estate professional, an investor or a dealer and you may have different options with each depending on your personal situation

Better to keep rent and refi. Or rent for first year and 1031 exchange

@KentonKnows

Жыл бұрын

That's my opinion based on the taxes and transaction costs....

@WinningDeadlyEncounters

Жыл бұрын

@@KentonKnows thank you for your advice much appreciated sir i have similar situation right now

In this scenario, since the property was owned for less than a year, you would also be subject to capital gains tax, unless you file for a 1031 exchange with the IRS.

@KentonKnows

2 жыл бұрын

In this scenario I assumed the seller was considered a dealer, not an investor. There is a difference. The dealer doesn’t pay capital gains nor can a dealer do a 1031. An investor can, but depends on your tax classification.

my question is what if your doing the work yourself? Like if you need to buy a dump truck or have meal expenses etc

@KentonKnows

9 ай бұрын

This video will better explain real estate accounting- kzread.info/dash/bejne/k5qFltmletvVl6g.htmlsi=xeRigBV2bSQHLPo3

What are the tax deductions if you sell after one year but before 2 years?

@KentonKnows

Жыл бұрын

Should be the same, but definitely confirm with your accountant.

How do you know if you'll get the self employment tax?

@KentonKnows

Жыл бұрын

You’ll need to talk to a tax professional for your particular situation and deal, but most likely if do a flip and make a profit then you’ll need to pay it.

flipping seems too much like another job! I prefer buy and holding investing.

@KentonKnows

3 жыл бұрын

Personally, I also prefer buy and hold investing as well, but I also understand we all have our strengths and preferences, so luckily there is a path for everyone.

Skip to 8:00 for the actual tax discussion

@KentonKnows

3 жыл бұрын

Thanks for watching, hope you found it beneficial. I thought the beginning explanation was important for a lot of people, but I understand you sometimes just want to skip to what's important to you. thanks for contributing

Thanks for being a depressing type of guy lol

@KentonKnows

Жыл бұрын

Just keeping it real. Better to know now than come tax time.