Generations Of Goodwill - INN the news 03.22.09

[Samster]

SL Wrote: The good news about the last one is that it hasn't been worked enough to generate ANY TA reviews so at least I wouldn't have to overcome bad publicity, just no publicity!
There is always "change the name of the business" so you get a fresh start on TA and every place else! It is not always detrimental to change the name when there is a history of a place online and reputation you want to freshen up.
Trust me when I say sometimes the baggage of a prev owner can bug you each and every day you run YOUR business. TURN-KEY is not always what it is crackedf up to be. Many so-called turn-key have to start from scratch in ALL aspects down to website design.
Like a house being bought by a new person and always being referred to as Dr Jones' house. No it is MY HOUSE NOW, sorry it will always be Dr Jones' house..

New owners of a place we looked at to buy that definitely needed TLC changed the name. I think that was a very smart move & we would have done it too! That innkeeper had MAJOR burnout!

 

[gillumhouse]

SL Wrote: Another is not being worked and shows no income for the last two quarters of 2008 when it was supposedly "closed for remodeling". I'm sorry...no one in their right mind would close for remodeling during the third quarter in this area, when it's make or break time. Something was up with that...I've seen the before and after pictures and remodeling was basically a paint job to the cabins and work on the innkeeper's quarters.
Is this so they can sell it and not pay the tax on it as a business? There is always a reason for what they do..

SL Wrote: Another is not being worked and shows no income for the last two quarters of 2008 when it was supposedly "closed for remodeling". I'm sorry...no one in their right mind would close for remodeling during the third quarter in this area, when it's make or break time. Something was up with that...I've seen the before and after pictures and remodeling was basically a paint job to the cabins and work on the innkeeper's quarters.
Is this so they can sell it and not pay the tax on it as a business? There is always a reason for what they do.

Do you have to go 2 years without running it as a biz to do that? I can't remember.
.

If I remember correctly, the last time I heard an accountant speak that rule had gone by the wayside. More recently, the two year rule on rental properties has gone away. In both cases, though, you have to recapture depreciation allowances. Don't ask me how - I don't know, yet, and figure I will cross that bridge when I get to it.
.

The two year rule still applies to 1031 asset transfers, which means you can defer capital gains on a business property by purchasing another business property. The two year rule in this case states that you must have used the property as a business for at least two years prior to selling it, and you must keep the new property for two years after purchasing it in order to keep the deferment.
.

The 2-year rule I am aware of is due to my former inn-to-inn partner who KNOWS anything that has to do with taxes and keeping money. To avoid having to pay the depreciation back, they closed the B & B to live in it as a residence for 2 years before they could sell it. His plan has been derailed with the economy and real estate market slump. They also have an antique shop and once they sell the former B & B the plan is to close the antique shop and live in IT for 2 years before selling. Now all he has to do is live that long....

 

[muirford]

SL Wrote: Another is not being worked and shows no income for the last two quarters of 2008 when it was supposedly "closed for remodeling". I'm sorry...no one in their right mind would close for remodeling during the third quarter in this area, when it's make or break time. Something was up with that...I've seen the before and after pictures and remodeling was basically a paint job to the cabins and work on the innkeeper's quarters.
Is this so they can sell it and not pay the tax on it as a business? There is always a reason for what they do..

SL Wrote: Another is not being worked and shows no income for the last two quarters of 2008 when it was supposedly "closed for remodeling". I'm sorry...no one in their right mind would close for remodeling during the third quarter in this area, when it's make or break time. Something was up with that...I've seen the before and after pictures and remodeling was basically a paint job to the cabins and work on the innkeeper's quarters.
Is this so they can sell it and not pay the tax on it as a business? There is always a reason for what they do.

Do you have to go 2 years without running it as a biz to do that? I can't remember.
.

If I remember correctly, the last time I heard an accountant speak that rule had gone by the wayside. More recently, the two year rule on rental properties has gone away. In both cases, though, you have to recapture depreciation allowances. Don't ask me how - I don't know, yet, and figure I will cross that bridge when I get to it.
.

The two year rule still applies to 1031 asset transfers, which means you can defer capital gains on a business property by purchasing another business property. The two year rule in this case states that you must have used the property as a business for at least two years prior to selling it, and you must keep the new property for two years after purchasing it in order to keep the deferment.
.

The 2-year rule I am aware of is due to my former inn-to-inn partner who KNOWS anything that has to do with taxes and keeping money. To avoid having to pay the depreciation back, they closed the B & B to live in it as a residence for 2 years before they could sell it. His plan has been derailed with the economy and real estate market slump. They also have an antique shop and once they sell the former B & B the plan is to close the antique shop and live in IT for 2 years before selling. Now all he has to do is live that long....
.

I don't believe that is current any more. They have definitely changed the tax laws in regards to rental property - even if you make a former rental property your primary residence for two years, you now have to pay some prorated taxes on it. That law just changed this year. It would be worth checking into before someone plans that as a method of avoiding taxes.
Here is an article about the change.

 

[springlady]

SL Wrote: The good news about the last one is that it hasn't been worked enough to generate ANY TA reviews so at least I wouldn't have to overcome bad publicity, just no publicity!
There is always "change the name of the business" so you get a fresh start on TA and every place else! It is not always detrimental to change the name when there is a history of a place online and reputation you want to freshen up.
Trust me when I say sometimes the baggage of a prev owner can bug you each and every day you run YOUR business. TURN-KEY is not always what it is crackedf up to be. Many so-called turn-key have to start from scratch in ALL aspects down to website design.
Like a house being bought by a new person and always being referred to as Dr Jones' house. No it is MY HOUSE NOW, sorry it will always be Dr Jones' house..

New owners of a place we looked at to buy that definitely needed TLC changed the name. I think that was a very smart move & we would have done it too! That innkeeper had MAJOR burnout!
.

Well, this owner decided not to sell after all so I won't be looking at it. Strange deal - waited until listing agent called her to book a showing (which speaks volumes about how much it hasn't been shown) to tell her to take it off the market.
So I'll be looking at two places tomorrow, not three.