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Smitty77_7

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  1. Have the the Real Estate/CPA's info, and we're doing a conference call tomorrow to wrap things up. A correction to the post I made above, about a strategy of perhaps having the DW be a California Resident, and myself retaining SD Domicile. Above I share this info from the Internet: "If you meet all the requirements for the exclusion, you can take the $250,000/$500,000 exclusion any number of times. But you may not use it more than once every two years." "There are certain additional requirements you must meet to qualify for the $500,000 exclusion. Namely, you must be able to show that all of the following are true: you are married and file a joint return for the year either you or your spouse meets the ownership test both you and your spouse meet the use test, and during the 2-year period ending on the date of the sale, neither you or your spouse excluded gain from the sale of another home." The Attorney/CPA clarified that this is true, but to get the full $500K for the sell of the home, both spouses must meet the 'Use Test". Which I would not, being Domiciled in SD. So only her $250K exemption would apply. (A side note: I educated her, and then she fact checked, the difference between 'Domicile and Resident' (Took her a bit to understand the nuances involved:)!) === As further info sharing, without going into specifics: > Much less of a difference between the 'Walk Away' amounts after taxes for either home, by waiting for 2 out of 5 Exemption to kick in. (The California Taxes, DMV, Higher Insurance, etc. contributed to this being a relatively smaller difference then either myself, or the CPA side of the Attorney had first expected:)!) > She did confirm that the Rental Properties Passive Loss Carryover, offsets as part of the overall AGI. (Not against the Depreciation Recovery, as someone had suggested to me.) (She answered many more of my questions, but more specific to us, so will not bother posting hose here.) My wife and I are waiting until I finish the wrap-up call tomorrow, then we'll sit down and kick things around. No question the selling of the Rental Property would yield the highest Walk Away funds between the two properties. And no questions that we prefer our current Vacation home (Where we raised the family, holidays, 2 weddings and 5 receptions, wife's garden and the kitchen she designed and loved, set up well for aging with a large bedroom to use, etc.). And, I suspect the wrap up call tomorrow will confirm the selling of the Rental Property will have more ripple ramifications and complications between my wife and I, and her Mom as Co-Owner's. (This would cause her aggravation, and concern - because it's her nature.). The Rental house, is also the newer structure, better built insulation wise, and has the separate quarters upstairs that could be used by us as a California Foothold ahead. From a pure financial standpoint, when my MIL 'moves on', the Step-up cost basis to us is also an advantage. And then at that time, we could then again start renting out the lower house (3BR, 2BA, 2 Car Garage) - and that would carry the costs of the property as well as should generate a small amount of positive cash flow too. (The upstairs unit is a 1BR 1BA 1,100 SF place, over a 3 Car Garage which we'd retain for our use too, and has the RV Parking spot beside it as well.) So my current thoughts are we will elect to: -Not Re-Califorinize ourselves -So no need to wait for the 2 out of 5 exemptions (Either $250K if just the DW or $500K if both of us were to return to California Residency.) -Probably sell our current Vacation Home. Give notice to the tenant, our Daughter, of our intent on moving the MIL back into the lower house at the early part of next year. We would no longer have it be a Rental Property, it would become our Vacation Home. So unless after the final review with the Attorney/CPA turns up something I've missed while reviewing her findings. Or, the DW's attachment to our current Vacation Home are too strong - I believe this the direction we'll head. A bit lower Walk Away then I'd have preferred. But the KISS approach on taxes going forward for both us and MIL. And in the future, the Step-up basis is a positive too. For those of you who do not care, sorry for being so long winded. I know reading many posts on this forum, I learned quite a bit from the generous info sharing of others. So, if this helps someone down the road, great! Best to all, Smitty
  2. Smitty77_7

    Advise Needed

    As usual, great feedback. I really like the comments about sitting in and visualizing how you'd live and use a space of a specific RV. Both with Slides Out, and In. I also know that some want to tow larger Toads, and or Trailers with lots of toys. So if you'll be in that gang, also consider the chassis/engine/trans combo to handle this heavier duty usage. Moving to 40' with Tag usually gets you a unit that can handle the weight. Moving up the pecking order of coaches in that length, also usually gets you to a larger block engine (Cummins ISM, ISX or CAT12/13/15 or Detroit). These bigger block engines not only provide more HP but Torque too. And just as important, most of these engines will have Jake Compression Brake, either 2 or 3 Stage, and larger displacements provide higher Braking HP for going down the mountains. Of course if you do not expect to haul heavy toads, and or trailer of toys - then Gas Chassis Class A's should also support you well. (Lots of searches here, and say on RV.Net or IRV2 on 'Gas vs Diesel' will yield lots of reading material on this subject:)! We have some good friends that are starting their search for Class A they'll use as Snowbirds coming out of Bozeman, MT for the winters. They expect probably 2 1/2 - 3 1/2 months over this period. They're currently looking over various Class A's Gassers in the 32-36' range. I suspect they'd also be fine with up to 38' in a gasser. They're focusing on the inside livability, more then mechanical at this time. (Though I believe they're also considering a 1/2 Ton Chevy or GMC Crew Cab too, so if they end up towing that, it might move them into a DP just to handle the truck as a toad. My DW and I chose a 40' with two Drivers Side Slides, primarily due to one of the campgrounds we liked to visit had some tighter width sites. We've been a few places over the years, where we would not have been able to fit in the available sites if we'd had a 3 or 4 slide coach. Not the norm for sure, but in away we were lucky to have only two slides. (Last time was at Yellowstone's Madison Campground. 40' sites are not as plentiful, and the one we reserved required coming in the wrong way on a oneway loop, in order to get in between some trees. We would not have been able to use a Passenger side slide in that site:)!. But again, not the norm. Take a good look at holding tank sizes, if you think you will be boon docking quite a bit. Also really understand the differences of the chassis below the coaches. For example some 32-34' entry level Class A's have shorter wheelbase F53 chassis under them. With long tail overhangs. Where as if you go up the food chain, you'll find 32-34', and 36' too, with longer wheelbases. Usually at higher 24K or even 26K chassis capacity. Lots of fun sorting out what is important, or not, to you two:)! Happy hunting, and best of luck, Smitty
  3. Well Kirk - My DW and I both feel we've gotten into a barrel of snakes!! But, we know we did so for the right reasons of helping family. And, we'll get the right input and advice to make sure my layman's thinking/approach is not leading us down the wrong path. One thing for sure. The DW and I are looking forward to 'KISS' ahead... :)! (As long as KISS, does not end up with a reflective look bak of 'Well, that was stupid!'...:)! Best, Smitty
  4. I went back thru some of the links I had saved while researching, some cut & pastes from the article (From a law firm). Of course it could be wrong. But I also read parts of the IRS publication on this too. One item I'm asking the Real Estate Attorney/CPA to help me quality, is the final quote below. Considering having the DW become California Resident, while I remain SD. We'd still file Jointly Federal. State of California filing is where my mind gets severe cramps from strain:)! Assume my DW would file normal California 540, but only on her income draw from retirement, which due to the bulk of hers being out of a Rollover Roth IRA, is non taxable from the Federal perspective. This is another reason we're considering carrying the costs of the Rental Property, and not charge our Daughter anymore rent. Because I get confused on how that would work with us being joint owners, but only the DW required to file California 540's. Today we file a joint 540 NR (Non Resident) for the rental income. Not clear if we were to continue charging her rent, if it could all be filed under the DW's normal California 540, or if I'd still need to file a 540NR as going owner. Hoping the CPA will have a good answer to this one:)! The benefit of me remaining SD, and the DW coming back to becoming a California Resident, is that that makes keeping the RV and Toad registered in SD much easier. If we were driving in California, and I do the bulk of the RV driving, my DL's and RV/Toad plates would all match. And, no need to go take the Class B Non Commercial tests that California had me do before leaving the state in 2012:)! But would only do this, if the CPA confirms that we'd still be able to get the total $500K exemption, not just $250K for the DW being a Resident. Assume since it's a Federal exemption, that it should not matter if I'm a SD. And yeah, this would be interesting to have each of us as a different States Resident/Domicile:)! (AND NOT SAYING WE'LL DO THIS - JUST PART OF THE ONGOING 'What If?' research:)!) Fun, fun, NOT FUN - best to all, Smitty Here are some excerpts about '2 out of 5': "If you qualify for the exclusion, you may do anything you want with the tax-free proceeds from the sale. You are not required to reinvest the money in another house. But, if you do buy another home, you can qualify for the exclusion again when you sell that house. Indeed, you can use the exclusion any number of times over your lifetime as long as you satisfy the requirements discussed below." "If you meet all the requirements for the exclusion, you can take the $250,000/$500,000 exclusion any number of times. But you may not use it more than once every two years." "There are certain additional requirements you must meet to qualify for the $500,000 exclusion. Namely, you must be able to show that all of the following are true: you are married and file a joint return for the year either you or your spouse meets the ownership test both you and your spouse meet the use test, and during the 2-year period ending on the date of the sale, neither you or your spouse excluded gain from the sale of another home."
  5. Thanks for your prompt feedback. I was also researching the California Prop 13 property tax base transfer rules, which is also a onetime thing. As well as possible 1031's/721's - may have confused the converting of a 1031 acquired home, into a Primary Resident, timeline (And other 'gotcha's too'.). And we all know the danger of reading the Internet, as I'm pretty positive I read (Which seems to have been not correct!) - that the '2 out of 5' was not limited to a onetime occurrence. Appreciate your input, and will spend more time reading the fascinating (Though at times very poor story line!) of the IRS Regulations:)! Best to you, and all, Smitty
  6. Smitty77_7

    Residential Reefer Install

    Bill's link to a sister/brother coach is good info for you:)! You might also go to IRV2 Owner' Section and search for Samsung, suspect many have made this mod:)! I never fact checked this, and too late for me to do so now, but I read recently that Samsung does not honor warranty in RV's(?). So buying a Home Depot or Lowe's (Etc.) Extended Warranty might be good investment. If I had known their was a question about the standard warranty, I would have purchased an EW. If you boon dock a lot, beefing up the battery bank and making sure you have an inverter with capacity to handle start up, is further homework:)! Though the Samsung RF18 does have a little less surge demands at startup, then many refrigerators. I know some who do boon dock quite a bit, have added a dedicated smaller inverter just for fridge duty. This way they can turn off their larger main inverter to conserve idle AH draw. If you do not boon dock a lot, then the battery bank should be able to be smaller. In our coach, very minor cabinet work was required to fit the RF18 in the place of the Norcold 1200. And we did have to come in thru a window for our install. Best of luck to you, Smitty
  7. My understanding, and will need to fact check this:)! Is that we can use the exclusion only 'once every two years'. So if we were to say sell the Vacation home two years after becoming California residents. Change our Primary over to the current Rental home - we'd then need to wait at least two more years before we'd be able to use the exclusion again. And the point about the SD DMV and registration. I'll need also go back and re-read some of the links I saved when comparing SD, FL and TX as our Domicile state. But I believe that SD' Attorney General determined sometime in the mid 90's, that as long as we provide the Current State of Residency Address - that their was nothing in their states regulations to keep us from being able to also 'Register a Vehicle in SD'(?). (This was 6-7 years ago, and my memory may have that conveniently 'remembered' the way I'd like to have it work:)! So for sure, not going saying it is accurate.) And regardless, it is a valid point that some states are more 'concerned/aggressive' about these sort of things then others. California is one of them. As more info sharing. As we started our planning to evolve into retirement, and full timing. Our 'intent' was to have left California completely. That changed when my MIL had a combination of sever medical problems, as well as the bulk of her monthly income was also lost - when we had her very low functioning Down Syndrome move into a Group Home. (Her Husband's Military Pension benefits was left to her son. As a Special Needs individual, he retained 100% of his retirement. Whereas she as a serving window, would have received 50%.. When he moved into the Group Home, the State of California receive 100% of his income. Until a few years ago, when finally Congress passed a bill that allowed Military Special Needs individuals, to also have a Special Needs Trust established for them. Which we have now accomplished. But either way, Mom/MIL no longer has full access of these funds to live with.) I share all that, because my wife and I did truly 'intend' to leave California. And at the time we were doing all of this, we thought a home in either Spearfish, or possibly closer to Rapid City/Black Hills would be a great place to have as residence. With a winter home probably in either Congress, or perhaps back in California at Jojoba COOP's. Nope. Nothing firm, but sure what we were thinking. But 'Life Happen's', ours and our families - and like many before us, we've adapted our plans to facilitate others:)! We're not trying to pull any fast one's here. But now that the 2 out of 5 has expired. We see nothing wrong legally, or ethically, with altering our plans to minimize the tax hit. I still jokingly claim that it is our American Duty, to pay our taxes - but, to pay as little as legally possible. (Other's may see this as wanting to have our cake an eat it too - but, we see it as doing the right thing for us and our family.) We will get legal guidance on this, and we will be legal in what we end up doing. And one last comment about carrying the first to spread out the tax hit. We're going to need to 'cash out', in order to financially cover Mom/MIL's rental expenses going forward (And she will not leave her Down Syndrome son, whom we get on Saturdays to come spend the day with her:)!). As well as we're looking into replacement longer term home for my wife and I to come off the road. Reno, Prescott, Spearfish, Tucson, Lead, Sioux Falls - whatever it ends up being, or combos of being, we'd like to lock in a future place while Mortgage Rates remain low. Sharing lots here, but frankly many of the members of this forum have helped us determine our path into regiment when we started our research 10-12 years ago. And, having an 'Exit Strategy' was something that I added to our 'Planning To Do List' back at that time. Now, what we thought then - has changed. And that's OK:)! So if others read this thread in the future, I probably share more then I should. (Boring to some I'm sure. But, I read many great threads that helped us, by those who shared quite a bit - so paying it forward some.) And the key, as sent to me in a PM by a former Escapee who is no longer with us - is to always fact check what is read in forums!!! So, will send that tip forward too:)! Best to you all, and thanks again for the thoughts and cautions. And sorry for being long winded:)! Smitty
  8. All the feedback has been great, and much appreciated. When in doubt, we'll document what we're doing, and most likely do the path of least questions on what we're doing. I will also share that if we'd known the DW would become uncomfortable with remote property management - we'd had settled things while the '2 out of 5' time was still in place. Things change for all of us, and I support my DW completely. The reality is if she is uncomfortable, or stressed - it's time to do something to resolve that:)! Of course maximizing our walkaway funds is important. And as American's, is it not our job also to sip on a cup of Boston salt water tasting tea, and reduce our taxes as much as possible? Yep, we're patriots... We'll figure out the best course for us ahead. And welcome more input... Best, Smitty
  9. Thanks Twotoes:)! Looked into 1031's and semi related 721's. But our goal is to 'cash out' now, and of course minimize the tax hit as much as possible... And thanks Kirk, No question we need to do the legal thing, and we will. That being said, California has had no problem accepting our DMV fees on our Ford F150 that we keep at our Vacation Home, while being Domiciled in South Dakota. So it should not be illegal for us to have vehicles registered in other states then California? The devil of course is in the details. Because we travel outside the state of California the majority of the year, and will continue to do so, is the main reason I'm even exploring retaining SD registrations. I have not yet read the State of California DMV regulations on this, will try to do so before I consult with the Attorney (Being Real Estate focused, not sure if she'll have an opinion on this or not:)!). Appreciate both of your comments, best to you both and all, Smitty
  10. Smitty77_7

    Battery drain

    Curt - Who untangled the Xmas Light 'Ball of Wire!' for you? (It's a shallow, with no redeeming values from a 'Artistic Viewpoint'. But, our family watches it as a yearly ritual on whatever Friday night falls before Xmas. (I cook up a batch of Sh_tty Smitty Chili, and we work our way into the evening - everyone quoting the classic lines form this movie. My Daughter really loves telling me to go buy myself something 'Really nice...':)!)). Glad you found the problem... Salute! Smitty
  11. Was reading on IRV2 about the iSocket 3G. Dang it if it did not do two of the things we wanted: 1) Informs us of the inside temperature remotely 2) Informs us of Power Outages. (In storage, and or while at an RV park.) A side benefit, is the ability to remotely turn on a device if wanted. Like a plug in light, if we want to occasionally have the coach look like it has someone in it. Like where we store it close to a street next to a garage next door. We can now turn on the lights remotely for a period of time if we want. I went with the no contract Truphone 3G SIM, which at $.09 a text - should last for a few years before needing to be topped off. Took less then 4 days total to get the iSocket and the Truphone gear, set up the accounts and place in the coach. (iSocket was order in the AM, shipped that night from Finland, and was in San Diego on the second day...) Just trying to share ways for us all to help the economy, and have new goodies to play with too:)! Best to all, Smitty https://www.isocket3g.com/us/
  12. Smitty77_7

    Battery drain

    Kirk said: "For that reason, put your meter between the negative cable and the negative post, along with the fact that you should always remove the negative cable first to avoid arcing from a tool." In general this is the sound advice for all things electrical, not surprising with Kirk's 'few years of experience' in electrical and all things RV'ing. That being said, their is on exception worth cautioning about, because it is a widely used piece of equipment. Magnum MSxxxx series for sure, and perhaps MExxxx(?) too, are a bit different. Most recommendations I have read is to disconnect the Positive battery cable first. The Magnum searches for a 'path to ground', and with Chassis and House batteries quite often partially connected together for charging reasons - the Magnum can remain active when it links to the Chassis negative for it's power feed. I recently changed out X's 4 L16's, and noted the MS2812 ARC50 remote still showed Inverting after disconnecting the House Negative feed to the Shunt valve. Researching I found cautions about disconnecting Positive lead from the House Battery first. A few, had damaged some equipment by the Magnum searching out the path to a Negative value. So for those with Magnum Inverter/Chargers, prudent to check your specific unit and how it is wired - to determine what is right for you. And I do not believe Kirk will have any concern about me tagging onto his post. He knows, we all know - he knows his stuff:)! OP - Even if you find and correct your higher power drain. Adding a good quality battery disconnect to your House bank makes life much easier. When in storage, you're then 100% sure that no house related parasitic draw is occurring. And, when doing quick maintenance activity on electrical in general, that quick disconnect makes it very easy to protect your house electrical by disconnecting:)! Best to all, Smitty
  13. Smitty77_7

    Nose high?

    Problem solved:)! And OP, hope the dropping of the hitch down some is enough to get you level enough for safety:)! Best, Smitty
  14. I've posted a thread on IRV2, with more info then I'll put here. http://www.irv2.com/forums/f92/reverse-state-domicile-to-residency-considerations-389615.html I'll post an abbreviated post here too please. I do see a few Escapee Forum members posting on IRV2 too, but suspect their are some that do not. When my wife and I started our journey to retirement, this forum was instrumental in providing advice and suggestions and 'What if's?' input to us as we both prepped for, and then transitioned into, retirement. So, wanted to tap this braintrust for input again. Current -We're SD Domiciled now since 2012. We retain two homes in California. 1) Our former residency home, is now our vacation home. The second, we transitioned over to a Rental Property. We've filed 540NR's on the Rental Property, and retained the Vacation Home to provide a place for my wife's Mom (I call her Mom too:)!), to have a safe place to live at no cost. -My DW has become stressed by us retain the Rental Propety. We manage it remotely the bulk of the year as we travel. Great tenant, now for 6 years, so that thank goodness has been a positive. But DW being stressed, is not a good thing. So we're thinking of selling the Rental Property. -A good problem to have, is high Cap Gains. So much so, that even with the 2 out of 5 $500K exemption, we'd still pay a lot in Cap Gains, remaining bumped up to the 20% Cap Gain level for that yer. -So doing the math, subtracting out the costs of becoming California Residents again for say 2 1/2 years to gain the 2 out of 5 $500K exemption, it sill pencils out worth the PITA to do so. Coach registration remaining in SD is my question. We'd both have California DL's again after we change back to California Residents. But the Coach and Toad would remain out of California for the 7, 8, 9 months a year we'll still be traveling. Opinions on leaving them both, or perhaps just the Coach, registered in SD? If needed, we could leave the coach in Yuma, 3-5 months (Usually in 4-6 week timeframes.) we'd be back in California. Any opinions or thoughts on this would be appreciated. TIA, and best to all, Smitty (Note: Mentioned in the IRV2 forum too, that I do have an appointment next week to review my worksheets with a Real Estate Attorney who is also a CPA. So will be getting finite input on the taxes portions of this. In a quick call, she said she had no experience or opinion on vehicle registration strategies:)!)
  15. Smitty77_7

    Stumped. RV won't start, not a battery problem

    10-4! Missed that as I read you post:)! Still would take a reading of the battery, or if you have jumpers that will reach it, and or battery boost from House to Chassis, might give that a shot too:)! Looking forward to your Root Cause find!! (Suppose you are too:)!) Smitty
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