Menu
Cart 0

News for Real Estate Investors and Landlords

Redemption Rules

Posted by Denise Evans on

This advice applies to foreclosure redemption and tax sale redemption. The redemption process usually starts with a written demand for lawful charges. It does not have to be any particular form. It does not have to be certified mail. It can be an email.  The November 6, 2015 decision in Wall to Wall Properties v. Cadence Bank (Alabama Court of Civil Appeals, by assignment from the Alabama Supreme Court) held that a motion placed on the AlaFile online system for lawsuits, and then transmitted via email by the system, met the requirement of a "writing."  For you tax sale investors,...

Read more →

Lawn Care as Redemption Expense

Posted by Denise Evans on

You buy a tax sale or foreclosure property. The lawn is a jungle, or maybe everything is dead.  Either way, you restore it to something attractive, and then maintain it with twice-monthly mowing, plus other landscaping maintenance as needed. Can you recover this expense if the owner redeems? Yes!  Certainly "yes" after a foreclosure, but I think also "yes" after a tax sale. My answer is based on the case of Godfrey v. Black, 240 Ala. 151, 197 So. 892 (1940) which was a foreclosure redemption case. After a foreclosure, the redeeming party must pay, in addition to other charges, the...

Read more →

Contested Redemptions

Posted by Denise Evans on

What actions must done in writing when there is a contested redemption after an Alabama foreclosure or tax sale? After a mortgage foreclosure, a redeeming party must also pay the value of all permanent improvements added after the foreclosure and before redemption.  After a tax sale of a property that contains a residential structure, a redeeming party must also pay the value of all preservation improvements performed after the tax sale and before redemption. The following rules apply to either type of redemption. Writing required:  The redeeming party must make a written demand on the investor for the value of...

Read more →

Terrific Tax Deduction

Posted by Denise Evans on

I learned this trick at a webinar I attended.  If you have an LLC, then your LLC should rent your home for all-day business meetings or "planning retreats," once a month.  As long as  your home is rented 14 days a year or fewer, then you have no taxable income. On the other hand, the LLC has a deductible expense. What a great way to reduce your taxable income! FYI, Hotel meeting rooms generally rent for $150 to $500 per day, depending on amenities, location, and catering.

Read more →

Free App Helps With Tax Deductions

Posted by Denise Evans on

Many real estate investors are not able to fully deduct paper or real losses because of the passive activity loss limitation rules. Your accountant never warns you. You just get surprised, and don't realize there is a way around the problem. The subject is WAY too complicated for this one blog post.  We have a DVD called Income Taxes for Real Estate Investors that covers the rules and the workarounds, along with a lot of other tax-saving topics.   The purpose of THIS post is to tell you about a handy little tool that can help a lot with the...

Read more →