Landlord Liability : ezLandlordForms

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John C

started a topic over 11 years ago

I have a mulit-unit building in Chicago, Il. Recently a pipe broke in the ceiling of a 1st floor unit and caused major water damage. I have had the repairs completed but the tenant is expecting me to pay for his stereo and furniture that were damaged. Am I liable?

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Scott S

said about 9 years ago

We are in MA and our 2 family had major leaks due to snow on roof and huge icicles. One side is bad other side is pretty bad as well. We have been talking to our insurance Co but we are curious if we are responsible for any of their items that might have been damaged. Is this where Renters Insurance should take over. What are we liable for. Thank you so very much.. Joni

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Marcello M

said about 11 years ago

Do what you would want to happen if the tenant's property damaged your pipe. Would you want him to be responsible?

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John C

said about 11 years ago

Dawn, I believe I do understand that statement and that you do as well. As you point out in your closing, "and business owners like everyone else (non-business owners), contributed taxes to the government to make that happen." We did and continue to pay tolls and taxes for those roads and bridges, just like everyone else so what was his point? We owe government? This is the part I don't understand. I presume that you have income producing property. Were you aware of and are you OK with this 3.8% tax on your net rental income? Is this fair? Is this what was promised us? I don't make $250,000 net let alone the $400,000 threshold that was legislated; yet, my net income will take a 3.8% hit this year and so will yours. I am curious. What are your thoughts? Any and all are welcome to comment on this. If anyone more familiar with these forums think we should move this thread to another topic forum, please feel free to direct us accordingly.

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John C

said about 11 years ago

Well said. But I don't quite see the portability that you espouse as a choice. I am heavily invested here and I can't just pick up my bricks and go somewhere else. I do my best to be a good landlord and my tenants appreciate everything except the rent increases. I know that we have to accept this but why have we been so deceived? Obamacare was packaged this way with these little known caveats only now surfacing (remember, no one in congress read it before it was signed). Where is the transparency we were promised four years ago? And what else has been conveniently tucked into the (un)affordable health care act that we still don't know about? And Dawn, if you are thinking about cashing in by selling, good luck! Even if you get a good price, where are you going to put all of those worthless dollars? What will be your hedge against inflation when the market doesn't keep up and it takes a wheelbarrow of them to buy a loaf of bread? Worse yet, the country goes bankrupt and those dollars are worth less than the toilet paper they can buy. With what will you barter for to get the basics like food? Shelter is always in need ... so battered as we may be or become, it is still the best investment in my portfolio ... and possibly, probably yours too. So my end analysis is that there is absolutely no use or utility in my complaining. Thank you for helping me reach this conclusion. I truly hope that someone in DC gets a grip; more like a choke-hold on this tax and spend binge with salutes and glasses clinking before the band marches us all into national bankruptcy.

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Dawn A

said about 11 years ago

To clarify -- the 3.8% Medicare tax will be imposed on investment and rental income earned by higher income taxpayers. And it only applies to the NET rental income, not the gross rental income. That means that this is AFTER all the deductible expenses used in operating the rental property. How am I to say what is fair? The government spends money on things I don't agree with but other people do. The government spends money on things I do agree with and other people don't. I don't spend the money; my power is to cast votes to elect people to do what I want. But if more people agree to vote in people that don't agree with me, then I am overruled. I either accept it or choose to move to a different state or country. This country affords me the freedom to vote, or to move.

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John C

said about 11 years ago

Dawn, I believe I do understand that statement and that you do as well. As you point out in your closing, "and business owners like everyone else (non-business owners), contributed taxes to the government to make that happen." We did and continue to pay tolls and taxes for those roads and bridges, just like everyone else so what was his point? We owe government? This is the part I don't understand. I presume that you have income producing property. Were you aware of and are you OK with this 3.8% tax on your net rental income? Is this fair? Is this what was promised us? I don't make $250,000 net let alone the $400,000 threshold that was legislated; yet, my net income will take a 3.8% hit this year and so will yours. I am curious. What are your thoughts? Any and all are welcome to comment on this. If anyone more familiar with these forums think we should move this thread to another topic forum, please feel free to direct us accordingly.

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John C

said about 11 years ago

Dawn, I believe I do understand that statement and that you do as well. As you point out in your closing, "and business owners like everyone else (non-business owners), contributed taxes to the government to make that happen." We did and continue to pay tolls and taxes for those roads and bridges, just like everyone else so what was his point? We owe government? This is the part I don't understand. I presume that you have income producing property. Were you aware of and are you OK with this 3.8% tax on your net rental income? Is this fair? Is this what was promised us? I don't make $250,000 net let alone the $400,000 threshold that was legislated; yet, my net income will take a 3.8% hit this year and so will yours. I am curious. What are your thoughts? Any and all are welcome to comment on this. If anyone more familiar with these forums think we should move this thread to another topic forum, please feel free to direct us accordingly.

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Dawn A

said over 11 years ago

The "you didn't build that" is the most mis-understood comment ever. That does NOT talk about a person not building a business. It's talking about a business not building roads, bridges, etc. -- the government built those, and business owners like everyone else (non-business owners), contributed taxes to the government to make that happen.

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Bob R

said over 11 years ago

My pleasure, John. Welcome to the Forum. Hope you hang around and help those in need. :-)

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John C

said over 11 years ago

Sorry. Guess I did get off point. You are correct in saying that none of know all of the answers and that is why we come her. Thanks for your help.

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Bob R

said over 11 years ago

The information provided here is not just for your eyes, but for those that are interested in what the forum has to offers……Let me start by stating that “Your financial status was not questioned.” However, one can assume that since you’re here, you don’t have all the answers (13A statement) or you were looking for support. Therefore, I was offering additional information by suggesting you contact a tax expert regarding financial planning. Given your statement “inheritance loop”, I assume that there was no Living Trust in place…In closing, I’m happy to see that the conversation was returned to the original thread – Obama-Care! -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with Fed/State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download with data.

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John C

said over 11 years ago

I can't see how that would make any sense. Take an asset that I own free and clear, give it to my mother so I can go through the inheritance loop once again? I appreciate your posts but may I suggest that we return to the thread of this forum; Property Management as my financials are in order and that is not what we are here to discuss. You peaked my interest with your 40- years of experience as I grew up and into it 50 years ago. Today's challenges are far more a mine field than even a decade or two ago, let alone when my parents bought it in 1962. We as rental property owners are in for a lot of unexpected and unwanted surprises this year. Obamacare kicks in like a mule beginning this year and will tax our net rental income 3.8% in 2013. Have you, or anyone else figured out how to recover that? Best I can do is double it but 7.6% is a prohibitive increase to impose on any tenant and I'm not even sure that would do the trick. The government will take 3.8% of the net no matter what we do. Increase the rent and they win. Increase the rent more and they get more. So what do we do to recover from that? Nothing long term comes to mind. Short term I would say re-invest as much as you can to posture your property at the high end of the market to maximize rents and grin and bear it when the amortization runs out. The tax will not go away. But I guess since "you didn't build that" its fair ... ? Where was Obama when I was shoveling coal?

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Bob R

said over 11 years ago

You may want to Quit Claim your interest to your Mom. Check it out with your tax expert. How you get the property effects the basis for taxes. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with Fed/State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download with data.

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John C

said over 11 years ago

Loss of income is included in the policy. I own a portion of it already that I inherited when my father passed in 2005. My mother's estate is in order. Thanks for your input.

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Bob R

said over 11 years ago

Word of caution. Make sure Mom doesn’t place you on the Deed. Tax liability. Also, consider adding “loss of income” should something happen and you can’t rent the unit. . -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with Fed/State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download with data.