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Archive for November, 2016

Best ebay flip ever... or at least for me!

November 16th, 2016 at 04:17 pm

I went to a charity auction last night and purchased a brand new with tags, Dooney & Bourke matching wallet and handbag set for just $55. Got home and I broke the set apart and listed the handbag and wallet separately on eBay.

Within an hour, the handbag sold for $215! If I say the $55 cost was on the handbag alone, after fees and shipping, my net profit is $117.49! Once I sell the wallet too, my net profit on this one $55 purchase will be even greater.

Anyway, I've been on and off ebay since 2000 but just ramped up my ebay activity over the last week and trying to make some money with that platform. I've made quite a few sales but nothing like this one in such a short time frame so I had to share Smile

Happy hustling!

I need help from a tax expert about a rental property

November 3rd, 2016 at 06:55 pm

Anyone out there that can help?

We had purchased a home back in Aug 2006 for $288,000.

We lived in it until Aug 2012 when we started renting it out (we purchased a different home to live in and could not sell this one at all so renting was the only option).

The same family has been renting the house since Aug 2012 and now are ready to purchase it.

We haven't figured up the final number but I'm going to start with offering it at $250,000 and we'll probably end up selling it for a bit less than that but ultimately, we are definitely selling the house for a loss when compared to our purchase price of $288,000.

We have filed the property as a rental property each year on our taxes, claiming the rental income and all expenses including depreciation, etc.

The renters are flexible about WHEN to purchase the house whether it be in the next couple of months or later. Their rental agreement actually ends July 31, 2017 and so this next August 2017 will mark a complete 5 years that the house has been an official rental property. Since we will be selling at a loss, does it matter if we wait until after Aug 2017 to sell the house to them at all? I thought there was a 5 year minimum rule of some sort regarding the sale of rental property but I can't remember what that rule is.

Does anyone know if it matters to hold rental property for a minimum of 5 years if we are selling the property at a loss?