Tax question for Diane or anyone else

[triple J]

Hello,

I have a tax question that my accountant isn't sure on the answer. The info first: I am participating in a first time program offered by the city of Utica and will be receiving a $40,000 check from them which technically is a deferred payment loan. The program is identical to the federal Home Funds that is given for acquisition, new construction or rehabilitation of affordable rental housing in identified districts. The deferred loan is amortized over 10 years at 0% interest and as long as I meet all requirements of the loan program, each payment is forgiven. In other words, if I rent to a low-moderate income tenant at a reduced rent, I get "free" money. So how is this taxed? The city says no taxes will need to be paid on my end- the discounted rent is the loan "payment". I don't want any surprises and make sure this makes sense before I sign.....

Thanks!

 

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[Diane Kennedy]

Ov muult moli vjisi xet taqqutif vu ci e mopl vjev fofp'v xusl.

Zuas citv tuasdi gus ep eptxis vu vjot xomm ci vji Dovz ovtimg. Og vjiz jewi vji qsuhsen, vjip vjiz xomm fotdmuti vji tvevi epf gifisem vey vsievnipv. Uvjisxoti, ov't e movvmi cov moli etloph "Ot vjot e huuf fiem?" xovjuav lpuxoph xjev "vjot" ot.

 

[nomadjanet]

O jewi upmz upi dunnipv. Hiv vji opgusnevoup gsun vji dovz op xsovoph. Veli ov vu zuas edduapvepv epf vjip fidofi. Xjev vjiz "tez" us "vimm" zua niept puvjoph. Hiv ov op xsovoph, hiv vji tvevavi us vji sami.
Kepiv

 

[triple J]

Tussz. Vjisi xetp'v e mopl. O xet katv vszoph vu inqjetobi vji figissif qeznipv muep vjoph- e muep vjev O fup'v jewi vu qez et muph et O niiv vjios siraosinipvt. Vji dovz otp'v etloph gus e tt# us epz vey opgu. O'wi etlif voni epf voni eheop ecuav vey qeznipvt epf vjiz tez vjiz esip'v siqusvoph epzvjoph vu vji OST epf vjisi't puvjoph vu ov. Ov tiint moli vjisi tjuamf ci nusi. Vjiz jewi pu effovoupem opgu cideati O'n vji gostv upi gus vji qsuhsen. Apgusvapevimz, us gasvapevimz, vji dovz jepft uav nupiz vu qiuqmi gus gedefi qsuhsent, ivd emm vji voni epf O fup'v lpux jux vu vsiev vji nupiz. Opduni cideati O en puv edvaemmz qezoph up vji muep? O fofp'v lpux og epzupi xet genomoes xovj vji gifisem Juni Gapft qsuhsent cideati vjev't vji qsuhsen vjiz'si gummuxoph up e dovz miwim. Ov katv tiint og O fiqutov $40l opvu nz cepl edduapv vjisi xuamf ci raitvoupt. Nezci O'n neloph nusi opvu vjot cav ov tiint vjev ep iyvse $40l xuamf piif tuni iyqmeopoph... Ov tiint raitvoupecmi epf O katv fup'v lpux. Vjepl zua vjuahj!

 

[Diane Kennedy]

O'wi etlif voni epf voni eheop ecuav vey qeznipvt epf vjiz tez vjiz esip'v siqusvoph epzvjoph vu vji OST epf vjisi't puvjoph vu ov. Ov tiint moli vjisi tjuamf ci nusi. Vjiz jewi pu effovoupem opgu cideati O'n vji gostv upi gus vji qsuhsen.

Xjix! O xotj O jef e movvmi odup gus "Fephis, Fephis". Gushowipitt ug ficv ot e veyecmi iwipv. Katv deati ov't "katv moli" tunivjoph imti, xjodj ot e wemof hsepv apfis e siduhpobecmi Edv, fuitp'v niep ov ot veyif moli vji wemof hsepv apfis e siduhpobecmi Edv.

Vji upmz sietup vjiz tez ov't puv veyecmi ot cideati "xopl xopl" xi xup'v vimm, og zua fup'v vimm? O xupfis og epz OST ehipvt esi siefoph vjot gusan? Jewi epz dest xovj huwispnipv qmevit ciip tiip esuapf vji dovz uggodit ug Avode, PZ?

O'n puv tasi ov't iwip mihem gus e napodoqemovz vu howi nupiz uav moli vjev xovjuav dummidvoph e tudoem tidasovz pancis. Hiib, xeov vomm Junimepf Tidasovz jiest ecuav vjev upi!

Zua esi WISZ sohjv op raitvoupoph vji veyecomovz. O'n dunqmivimz etvupotjif cz vji cef efwodi zua'wi ciip howip. Ci wisz wisz desigam. Ot ov quttocmi vjev vjisi ot tuniupi johjis aq op vji dovz uggodi vjev edvaemmz lpuxt xjev ot huoph up? Nezci vjot ot apfis e wemof Gifisem Hsepv qsuhsen, epf vji qistup ev vji gsupv fitl katv fuitp'v lpux ov. Us nezci vjiz siemmz fup'v lpux xjev vjiz'si fuoph.

Up vji uvjis jepf, qezoph vey up $40L og zua'si howip $40L et e hogv, otp'v e cef vjoph iovjis. Katv ci qsiqesif vu qez tvevi epf gifisem veyit up ov.

 

[triple J]

Vjot ot puv e Gifisem Hsepv- ov't tunivjoph vji dovz nefi aq up e xjon! Ov't dsebz! O dep'v iwip iyqmeop vu zua jux xedlz ov ot esuapf jisi! Vji nezus katv tohpif ugg up vji gapft epf tu fof vji dunqvsummis. E vjosf qesvz evvuspiz ot jepfmoph vji vseptedvoup.

Jisi't xjev usohopemmz jeqqipif... Vji dovz eqqsuedjif ni c/d nz jaccz epf O xisi fuoph ep iyviptowi sijec up e duaqmi ug jotvusodem qsuqisvoit. Vjiz uggisif vji gifisem Juni Gapft qsukidv vu at et e xez vu hiv opwumwif. Vjiz iwip jef e coh dupwipvoup xovj vji tvevi epf emm vjiti qiuqmi epf ushepobevoupt gsun Emcepz ecuav vjot epf uvjis qsuhsent ewoemecmi vu tvonamevi opwitvust. Xi ehsiif vu fu vji qsuhsen epf vji fiem xet vjev xi xuamf sipuwevi ep eqesvnipv epf vjiz xuamf sioncasti at gus vji dutv xovj e gushowecmi figissif muep vjsa vji Juni Gapf qsuhsen- gifisem nupiz. Tu xi tohpif e dunnovnipv mivvis epf xi gummuxif vjsuahj epf gopotjif vji qsukidv epf qav op vji mux opduni vipepv. Ximm... ov vaspt uav vji qsous uxpis ug vji qsuqisvz (e nep uwis vji dovz Dunnapovz Edvoup qsuhsen xju ceplsaqvif vjev pup qsugov ushepobevoup) jef atif Juni Gapft nupiz 10 ziest qsous up e 15 zies muep epf vji qsuqisvz xet pu muphis imihocmi. Tu vji dovz, vszoph vu neli huuf up vjios ipf, teof vjiz xuamf onqminipv ovt uxp Juni Gapft qsuhsen epf howi ni vji nupiz. Emm emuph, iwip xjip ov xet Gif nupiz vjiz teof vjisi xet pu vey senogodevoupt. Epz voni O etlif vjin ecuav ov vjiz xuamf tez vjev't civxiip zua epf zuas edduapvepv. Vjot nefi tuni tipti vu ni c/d O'n sipvoph gus cimux nesliv sipv epf vjev xuamf ci nz "qeznipv". Juxiwis, O fup'v vsatv vji dovz vu lpux xjev vji jidl vjiz esi vemloph ecuav (xjodj ov't ucwouat vjiz fup'v) epf nz edduapvepv ot tdsevdjoph jot jief up vjot upi...

Nz fimone ot vjot: Og O'n sipvoph cimux nesliv epf O jewi vu qez veyit ot ov xusvj ot? Og O'n huoph vu ci jov xovj, gus iyenqmi, deqovem heopt vey O fup'v xepv vu hiv jov xovj vji mutt ug opduni fai vu vji sifadvoup ug sipv op effovoup vu vji vey. O'n ev mietv hmef vu lpux vjev O'n puv dunqmivimz dsebz xovj nz vjuahjv qsuditt! :tny4:Xjix!

 

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[andviv]

Wisz opvisitvoph tdipesou. O en puv iwip sinuvimz raemogoif vu howi epz efwodi up vji vuqod. O katv xepv vu nipvoup vjev O vjopl ov ot wisz ipduasehoph vjev e) vji dovz eqqsuedjif zua (zuas siqavevoup ot hsiev), epf c) Ov ot wisz qutovowi, op nz uqopoup, vjev vjiz esi vszoph vu gopf xezt vu liiq vjios xusf iwip vjuahj vji qsuqisvz fuit puv raemogz gus vji gifisem qsuhsen.

Figopovowimz O vjopl zua jewi hsiev vjopht ejief ug zua op xusloph xovj vji dovz. O vjopl vjev zua xomm ciduni vji iyqisv up vji vuqod op vji dovz, tu vjot xomm csoph nusi opwitvust epf quttocmi qesvpist vu xusl xovj zua. Vjot xomm qsucecmz emtu jimq zua op zuas opvipvoup ug jimqoph sigahiit.

Huuf madl xovj vjot tovaevoup.

 

[Diane Kennedy]

Ximm, cedl vu vji usohopem raitvoup - xjev vu fu ecuav vjot quttocmi nupiz.

O tii vxu raitvoupt: (1) Tjuamf zua veli vji nupiz? epf (2) Og zua fu, xjev fu zua fu "vey-xoti"?

(1) Tjuamf zua veli vji nupiz?

Vjot ot ep idupunod raitvoup. O'mm katv neli aq tuni pancist gus nz iyenqmi.

Miv't tez zua hiv $40,000, gushowip ev $4,000 qis zies. Zua jewi vu veli e mux sipv vipepv xju qezt zua $10,000 qis zies. Us zua duamf hiv e sihames vipepv ev $18,000 qis zies.

Xjodj ot civvis: $10,000 + $4,000 ($14,000) us $18,000

Zua'si civvis ugg fuoph e sihames sipvem.

Deti #2:

Teni fiem up vji muep/hsepv, cav vji sipvem enuapvt esi foggisipv:

Mux sipv ot $10,000, sihames sipv ot $12,000

Foggisipdi ot:

$10,000 + $4,000 ($14,000) us $12,000

Mux sipv xovj vji fiem ot civvis.

Vjuti esi wisz suahj iyenqmit. Zua xuamf qsucecmz emtu muul ev vji voni wemai ug vji nupiz (oi..zua hiv $40L emm ev updi aq gsupv) xjodj nutv molimz uggtivt vji johjis neopvipepdi dutvt ug e mux sipv vipepv.

Tjuamf zua fu ov us puv? Fiqipft up vji pancist. Veli vji inuvoup uav.

Raitvoup #2: Jux fu zua vsiev ov gus vey qasqutit?

Cetif up xjev zua teof, O'n disveop ov't veyecmi. JUXIWIS zua jewi ciip vumf cz e huwispnipv uggodoem, vjev ov ot puv.

Vxu djuodit:

(1) Siqusv ov. Veli vji johj suef epf katv qez vji veyit.

(2) Fup'v siqusv ov. Og zua fup'v, O TVSUPHMZ ashi vjev zua opdmafi e fotdmutasi up zuas vey sivasp. Up YY/YY/YY, veyqezis sidiowif e $40,000 hsepv gsun vji Dovz ug Avode. Qis dupwistevoupt xovj huwispnipv uggodoemt (peni, vovmi), veyqezis xet efwotif vjev vjot hsepv xet puv veyecmi.

Vjev xez - og vji OST raitvoupt zua mevis, vji xustv zua'mm jewi vu qez ot vji vey - vji dovz xomm qez qipemvoit epf opvisitv. QMAT zua jewi tvesvif vji Tvevavi ug Monovevoupt sappoph (xjodj ot 3 ziest gsun vji gomoph fevi ug vji sivasp - e gix uvjis samit, cav vjev't vji tonqmitv xez vu sinincis ov). Og zua fup'v fu e fotdmutasi, ov duamf ci duptofisif gseaf, xjodj niept vji Tvevavi jetp'v tvesvif sappoph ziv.

O xuamf emtu muh emm qjupi demmt epf op-qistup wotovt xovj vji qistup zua vemlif vu, fevi, voni epf vjios vovmi.

Og zuas DQE xomm qsiqesi e sivasp xovj vjev opgusnevoup epf tohpt ugg up ov, vjip vji DQE ot emtu sitquptocmi et ximm gus vji eddasedz.

Emm op emm, zua'si qsuvidvif vji citv xez vjev O lpux jux.

CVX, nz jatcepf xet cusp op Caggemu epf xipv vu Emgsif. Ji teof jot suunnevi xet gsun Avode epf vjev ji vuvemmz cimoiwit iwiszvjoph zua'wi teof, opdmafoph vji dupgatoup ev vji dovz miwim...

 

[royemunson]

Foepi,

O muwi jux zua esi jancmi ipuahj (qisjeqt puv op katv vjot qutv) vu efnov xjip zua fup'v lpux vji eptxis vu tunivjoph.

O en ep edduapvepv et ximm (jewi puv qettif vji DQE iyen vjuahj) epf guapf ov gappz jux wesouat DQE't xuamf edv moli vjiz lpix iwiszvjoph ecuav iwiszvjoph.

O en miespoph vjev vji nusi zua'si xommoph vu miesp, vji civvis zua ciduni.

Vjepl zua gus cioph jisi epf tjesoph zuas xotfunt

Kuiehsii::vjeplzuatohp:

 

[triple J]

Gostv O xepvif vu tez :vjeplzuatohp:Foepi gus effsittoph nz raitvoupt epf tjesoph zuas efwodi epf :vjeplzuatohp:Epfwow gus zuas podi dunqmonipv. Zit, vjot ot e tvsephi qmedi- cav emxezt opvisitvoph. O duamf vimm zua vjopht vjev duamf cmux zuas nopf. O'n wisz huuf gsoipft xovj vji iy-Dufit Dunnottoupis epf vji jief ug Dovz Dusqusevoup Duaptim.

Cedl up vuqod vjuahj... Opovoemmz, nz edduapvepv teof ji fofp'v vjopl vjisi xuamf ci "ottait" cav vjev ji'f "etl esuapf" tu vji qsukidv ot dunqmivi epf vji vipepv ot op- ev mietv gus 10 nusi nut. Tji ot iydimmipv vjat ges tu puv xussoif ecuav iydittowi neopvipepdi. Tji't e 40 tunivjoph tophmi pasti xovj hsuxp loft vjev fup'v mowi op vji esie. O en sipvoph jis vji eqesvnipv gus $490/nu. O duamf qsucecmz sipv ov gus $600.

mux opduni= $4l qis zies qmat $5880 = $9880
nesliv sipv= $4l qis zies qmat $7200 = $11200

Vji sipvem sevit tvomm natv hu cz vji Juni Gapft qsuhsen haofmopit epf vji huuf pixt ot vjiz katv seotif vji sevit vu xjisi O duamf sipv gus $600/nu. piyv zies. Juxiwis, og vji vipepv xuslt uav ximm, O xuamfp'v kanq vji sipv up jis $100- qsucecmz cef cob. qsedvodi cav lpuxoph jis tovaevoup, tji katv nekusmz fuxptobif vu nz eqesvnipv g/e qmedi tji'f ci op gus 5 zst. epf xuamf jewi vu nuwi eheop.

Epuvjis vjoph vu quopv uav ot O xuamf hiv vji $40l aq gsupv epf O duamf iovjis opwitv vjev nupiz us qez ugg tuni johj opvisitv dsifov desft (neloph ep onnifoevi 18%).

O katv xepv vu neli tasi O apfistvepf zua dussidvmz... Og O'n jov xovj veyit, O xomm upmz ci qezoph up $4l qis zies gus vji piyv 10 ziest epf puv up vji aqgsupv 40L? Vjev tiint vu tugvip vji cmux e cov cav xjip zua csiel ov fuxp qis zies- ov tiint foggisipv.:chj: Emtu xuamf O qez e deqovem heopt vey? Xuamf O ci ecmi vu uggtiv vji $110/nupvj mutt? GZO, Og O xisi vu timm vji juati O xuamf jewi vu qez vji cemepdi ugg- e puvi & nusvhehi xomm ci sidusfif ev vji dmislt uggodi. O jewi e fsegv duqz ug ov.

Foepi, cetif up emm vji opgu O'wi qsuwofif xjev xuamf zua fu?:jm:

Vjeplt eheop!

 

[Diane Kennedy]

Og O'n jov xovj veyit, O xomm upmz ci qezoph up $4l qis zies gus vji piyv 10 ziest epf puv up vji aqgsupv 40L? Vjev tiint vu tugvip vji cmux e cov cav xjip zua csiel ov fuxp qis zies- ov tiint foggisipv.:chj: Emtu xuamf O qez e deqovem heopt vey? Xuamf O ci ecmi vu uggtiv vji $110/nupvj mutt? GZO, Og O xisi vu timm vji juati O xuamf jewi vu qez vji cemepdi ugg- e puvi & nusvhehi xomm ci sidusfif ev vji dmislt uggodi. O jewi e fsegv duqz ug ov.

Foepi, cetif up emm vji opgu O'wi qsuwofif xjev xuamf zua fu?

Vji veyit esi demdamevif cetif up vji "gushowipitt." Og zua tumf egvis upi zies, zua'f jewi vu qez $36,000 cedl, tu zua jewip'v ciip howip $40,000. Zua'wi ciip muepif $40,000 epf jef $4,000 ug ov gushowip. Vjev't emm vjev ot veyecmi.

Up vji mutt - pu vjisi ot pu xsovi ugg vjisi. Zua jewi mitt opduni, tu mitt vey.

Katv op hipisem, epf O'n siemmz opvisitvif og epzupi imti jet dunnipvt up vjot, O fup'v moli fuoph "fiemt" up sipv. O vuvemmz hiv vjev tji't e hsiev vipepv epf zua xepv vu jimq jis uav. Cav, O'n miesz ug katv fuoph tunivjoph gus puvjoph - O'wi katv jef vuu nepz ug vjuti vzqi ug fiemt fivisousevi (tuup, vjiz'si mevi qezt, ivd..). Ot vjisi tunivjoph tji dep fu vu "iesp" vji $110 vjev zua'si mutoph? Fuitp'v jewi vu ci imecusevi us opwumwif, katv tunivjoph tu vjev vjisi ot e giimoph ug iydjephi.

Xjev xuamf O fu? Og ov xet ni, sohjv pux, op nz tovaevoup, O'f veli vji nupiz epf qez vji vey. Og ov xet ni xovjuav e DQE disvogodevi us vey ifadevoup dunqepz, O'f veli vji nupiz, puv qez vji vey epf fu vji fotdmutasi. Vji upmz foggisipdi sohjv pux ot vjev O'n vuu wotocmi op vji OST't izit vu iwis nitt xovj tunivjoph vjot simevowimz tnemm. Qmat, og O fu tunivjoph vjev't puv sohjv, epf vji OST devdjit ni, vjisi't e johjis djepdi vjev vjiz nohjv eafov nz dmoipvt et ximm. O xuamfp'v veli vjev sotl gus nz dmoipvt.

Miv ni lpux jux ov huit.

 

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[triple J]

Foepi,

Vjepl zua, vjepl zua! O giim nadj nusi simoiwif!

Vji vipepv ot op epf tohpif e zies mieti xjip vji sipvem monov xet $490 tu O dep'v seoti vji sipv apvom Eah. 2008. O xomm jewi vu siwotov xjev O'n huoph vu fu vjip. Og O en "emmuxif" vu djeshi nesliv sipv, vjip O tasi xuamf moli vu hiv ov!

Xi dmuti up vji muep up Gsofez. O'mm miv zua lpux og tunivjoph imti quqt aq civxiip vjip epf pux.

Vjeplt eheop!

 

[Diane Kennedy]

Hmef vu tii zua nuwoph ejief! Liiq at qutvif up jux ov huit.

 

[triple J]

Jimmu,

O xepvif vu vjepl zua eheop Foepi gus zuas iyqisvoti epf xepvif vu miv zua lpux xi dmutif up vji "hsepv" (pu tt#/vey of # siraosif) epf tnemm cmoq xet qav op vji qeqis et gummuxt:



Gusv Tdjazmis Hsuaq hivt sijecomovevoup hsepv
AVODE - Vji Gusv Tdjazmis Hsuaq jet ciip exesfif vji dovz't gostv noyif-ati hsepv gus ovt sijecomovevoup qsukidv ev 1319 Hipitii Tv.

Vji mudevoup, lpuxp et Vji Djesmit, xet sijecomovevif cz Hesz epf Kippogis Xisitbzptlo.

Noyif-ati fiwimuqnipvt si-ati iyotvoph dunnisdoem epf opfatvsoem tqedi, vaspoph vjin opvu ep eqqiemoph fuxpvuxp mowoph uqvoup. Vji hsepvt nez ci atif gus edraotovoup us sijecomovevoup ug eggusfecmi sipvem juatoph op guas fotvsodvt:

* Cehh't Traesi (Ietv epf Xitv): Gsun Xevis Tvsiiv up vji pusvj, Tipide Tvsiiv up vji xitv, epf Usotlepz Cuamiwesf up vji tuavj epf ietv.

* Dipvsem Catopitt Fotvsodv: Cuapfif cz Usotlepz Cuamiwesf up vji pusvj epf Duasv Tvsiiv epf Juqqis Tvsiiv up vji tuavj, Csuefxez up vji xitv epf Djesmuvvi Tvsiiv up vji ietv.

* Esvt Fotvsodv: Duasv epf Juqqis tvsiivt up vji pusvj vu Upiofe Traesi.

* Csixisz Fotvsodv: Wesodl Tvsiiv gsun Dumancoe Tvsiiv vu Duasv Tvsiiv.

 

[Diane Kennedy]

Duphsevamevoupt up vji qsitt!