AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/15/2008 Subject: Buying house tax issues
Question My mom (85) lives in an apartment and is considering buying an investment house (foreclosure). She will have to remove money from an investment firm and lose several thousand dollars. What issues will this present for her income taxes, etc. Is this a good idea or not?
Answer Pam,
Thank you for your question.
1)What issues will this present for her income taxes, etc.
If she has to sell one asset to buy another asset, how much return does she want on her investment?
On the loss she will take , will it be tax deductible? Is she pulling money from a retirement account?
If she buys another home,will she be intending on renting it out?
If so, how much negative cash flow does she anticipate from the investment till it starts to turn a profit?
How much money will she have to pay on fix up expenses?
Can she handle the carrying costs of the investment property?
real estate taxes, mortgage on the new property, improvements on the property, ground maintenance, clearing up any liens on the property.
If she knows what she is doing, and the property is nearby, it could be a good investment. You need to take in account how old she is and how long she had to wait before she sees appreciation (Gain in value) on the property.
