What’s all this stuff I keep reading about bowling alleys?
I’m talking about all the bowling alleys I see included as amenities in a bunch of high-end listings of late. For example, Petra Stunt’s $195 million dollar estate has a bowling alley. (It also has a beauty salon, a gym, a wine tasting room, and massage and tanning rooms. My question is: are all of these rooms within walking distance to each other, or does one drive to them in the Formula One cars I like to imagine the racing heiress keeps on hand?)
Many other high-end listings, as well as historic buildings, list bowling alleys as amenities. This begs the question: Who the heck is doing all of this bowling? Continue reading
An article in the NY Times about the vociferous opposition to Disney’s rejiggering of a theme park ride got me thinking about mental health — mainly, my own.
Los Angeles is a town of contradictions: The same people who insist on eating only natural organic foods also happily inject non-organic silicone into their laughs lines (to the point that they look quite unnatural). This behavior largely goes without comment, which is really not surprising when you consider that as “the city of dreams,” people come to LA to become someone else: Cary Grant arrived in town as Archibald Leach; Michale Caine was Maurice Micklewhite; and Angelyne was… Well, let’s just move on. Continue reading
Though the original title of this piece was “Real Estate Trumps Taxes,” I want to make it very clear that this is an article about real estate investing.
True, it is inspired by reporting that Donald Trump may not have paid taxes for the past eighteen years due to close to a billion dollars of real estate losses. That said, this is about how even small investors can avoid or minimize taxes and is not meant in any way as a political piece to suggest that Trump may be slightly disingenuous when it comes to his comments on people who don’t pay any taxes…
No, this is an article specifically about the way real estate is treated by tax regulations which allow well advised investors to put money in the bank by offsetting gains with losses (some of which only exist on paper). And I want to share with you some real estate investment secrets that don’t require you to attend Krull University. Continue reading
Posted in Investment, Real Estate, Real Estate 101
Tagged 1031 exchange, deductions, depreciation, donald, humor, investing, Investment, mortgage interest, property, real estate, taxes, trump
Coming to a Real Estate Deal Near You
There was a movie out a few years ago that had giant robots battling each other for… well, I have no idea because I didn’t see the movie.
That said, the imagery of giant robots came to mind when I read this bloomberg.com piece about one giant developer (Alegem) taking on an even “gianter” developer (Wanda Group) over the rights to build huge residential towers in Beverly Hills. Though no buildings have been knocked down in in this fierce struggle, millions of lobbying and political advertising dollars have been spent on the next battlefield — a ballot measure that can make or break either project, which will be voted on by the residents of Beverly Hills. Continue reading
Take any basic accounting class, or go to Vegas for the weekend, and you’ll soon get the concept that financial losses are bad. Which is why you might scratch your head when I tell you that some of my most successful property investment clients ask me to find them properties that will show a loss.
I was recently discussing this concept with a colleague, when he smiled knowingly and said, “I get it, your client’s getting divorced and wants to hide some money.” After assuring him that this wasn’t some film noir-style fraud scheme, I explained that my client was talking about “paper losses.” The quizzical tilt of his head told me that I had some ‘splaining to do. Continue reading
Somehow, I never get to be the Top Hat.
I have clients who want to own investment properties. And even though they may own several personal and vacation homes, the idea of putting all of their property investment eggs in one building basket is counter to their successful track record of spreading the risk across different assets.
Regarding real estate, individual investors generally think of the three most common property holdings: office buildings, shopping centers and apartment buildings. And the easiest of these investments to manage and understand is the apartment building — people pay rent, you subtract your expenses and voilà, there’s your net taxable income. (The CPA then works his/her magic by factoring in mortgage interest and depreciation deductions, but that’s something for the next day.)
Posted in Investment, Los Angeles, New York, Real Estate, Real Estate 101
Tagged commerical, homes, housing, investing, Investment, los angeles, prices, real estate, Spencer Krull
Enjoying my morning coffee and LA Times, NY Style.
I never thought the Treasury Department’s thresholds for reporting the people behind cash purchases of residential real estate would make me face my bi-Coastal allegiances.
Having grown up in New York, and having lived in Los Angeles for more than half of my life, I’m conflicted. I read the New York Times (electronic edition) every day. I also read the Los Angeles Times (print edition), which, jonesing for a NY experience, I fold in the manner I learned in fourth grade so as to more easily read it on the subway. [That this was taught to me in school as part of the curriculum says volumes about the veneration of The Times. But I digress…]
I identify as a New Yorker, especially when it comes to claiming unparalleled authority on topics such as bagels and pizza. Even more so, I wear the mantle of having grown up in Manhattan with unwarranted snobbery over those from Long Island or New Jersey ― unwarranted as I was simply lucky to have parents cool enough to live in the city, and did not attain that rank of my own merits. Continue reading
Posted in Investment, Los Angeles, New York, Real Estate
Tagged Beverly Hills, FinCEN, homes, housing, los angeles, money laundering, real estate, Spencer Krull, Teles Properties, west LA