I have a hmwk asmt that i just don t get in my bus. law class over preparing a memo for clients on their condo they want to rent part time?
You just passed the bar and are working at a small firm in Belton, TX when new clients, John and Sue Smith, stroll into your office with the following situation:
“After several years of having a vacation condo unit owned by several parties in “partnership” of sorts, we have now become the sole owners. It’s what we’ve always dreamed of, but by nature of our complete ownership, there may be some legal concerns now. Though we do intend to occupy the unit ourselves quite a bit in our upcoming retirement, we also anticipate that we might need to rent it out in the summertime to help cover some of the operating expenses. In talking with some of the other owners who rent year round, they mentioned the possibility of setting up a business entity to put condo in.
Other than the condo, we really do not have much in the way of assets, thus we would like to keep the costs, as well as the paperwork/hassles at a minimum. We are required to carry substantial insurance on the place given its coastal location and vacation spot. Any advice would be greatly appreciated!”
im here because i do not even know where to start. any help would be greatly appriciated
- yogicskierLv 72 months agoFavorite Answer
1. Start by moving this question to the "Business & Finance" category, as the only people here are likely to be trolls. Click "Edit Question" and then "Change Category."
2. Check your textbook to see if there's a checklist for cases such as this, possibly in the appendix.
3. Review condo costs and look for savings associated with sole ownership.
4. Review current tax burdens and how to minimize them, especially in regards to retirement-age people.
5. Ditto for insurance, paying special attention to flood issues.
6. Review the additional costs associated with sub-letting the property as opposed to sole residency. These would include insurance and condo costs at a minimum.
7. See if there are any special circumstances (veteran tax rebates, social security benefits, etc.) that the couple can use to assist them financially.Source(s): Thank you for the ten points.
- Anonymous2 months ago
Your clients own a condo that they want to live in 9 months of the year and rent out 3 months of the year. They want legal advice on how best to do this in terms of liability and taxes in as cost-efficient a way possible.
...and your advice to them would be?