I would love to receive information from those with experience or knowledge….
I would love to receive information from those with experience or knowledge.
We bought an apartment in Baltimore registered under llc.
Unfortunately the seller cheated on us and at the time of the transfer of ownership recorded that the apartment was sold for $ 5,000, of course Hapoel we paid much more.
Today we want to sell the apartment for an amount similar to what we actually paid, we are months that we will have to pay a considerable tax because ostensibly there is a high capital gain.
The management company told us that it is not certain that we will have to pay tax because with the sale of the property we will close the llc and until the declaration in 2021 the company will not exist.
Sounds weird to me and I believe that at the time of closing the LCC there will be a reckoning with the US tax authorities
Thanks in advance to anyone who can help ????
Strange and dangerous…. A management company advises you to cheat income tax? .
What does the seller mean? 5000? Did you pay cash? Or did you transfer? Wasn't there a closing company? Wasn't there a lawyer? How much was the property offered for sale?
5000 is not a reasonable price.... collect data. Record the seller.
I would find a spirit that would type the data in the file as it were. And not as written
Israel Orange
Moshe Orange
Talk to your American accountant. I believe you did not pay in cash but by check. If this is the case you can file it as an expense on the property against improvement or brokerage.
In any case, I hope you lose as little as possible on the current project and learn the painful lesson about the next project. All of us here have made painful mistakes, these are the best lessons, as long as we learn from it! Successfully!
If you transferred X amount to the title company, there is no situation in which they recorded in the closing documents (HUD1)
Another amount.
Unless you did something wrong in the right way then you need to look at the case individually.
As my predecessors wrote, start with the title and then proceed to the attorney who will check all the paperwork.
In principle, if you have proof of money transfer, it should be sufficient for tax matters (but it is better to be compatible and in line with all the closing documents - buy and sell)
Successfully !
From what you say or you did not understand the deal to the end or you did not understand why you agreed or the title company did not do their job or there is just a mistake… no one can give you useful advice like this in the forum. It is best to consult a lawyer there (not someone in the country who claims to understand real estate in the entire United States because there is no such thing) I in your place would start with a phone call to the title company. They must work according to the law and they have taken care of these things for you and can explain to you what you paid to whom and why.
If there is proof of transfer of the money to the seller then there is proof. Your profit is not what appears on paper but what actually happens, and if you have a way to prove what you spent then in terms of taxation in the US it is enough.
How did I cheat?
Where is $ 5000 listed?
In contract or in Hud?
And how did you sign without checking?
Without detailed documents and additional details it will be very difficult to answer this for you. It is highly recommended to contact one of the entrepreneurs active in the forum privately and ask for assistance
There is an agreement between you and the company on the actual amount you paid. Submit the agreement as a consultation or renovation fee.
Many investors buy the net asset at a very low price, but the rest of the amount goes to improvement.
If everything went through Escro, you should have closing statements / Hud-1's that show the transfer of funds and this is what is presented to the tax authority in the case of an audit. It could also be that you were not "cheated" and that the county made a mistake in registering but probably should not affect the IRS
I asked: How exactly did the seller "cheat" you? Do you sign Blanco like that?… I'm seriously interested to know if it's possible.