UPDATE: To read the blog that was created for the purpose of documenting the mis-adventures of John Hoff aka Johnny Northside, click the following link:
W ith no thanks to John Hoff AKA Johnny Northside or Hawthorne Housing Director Jeff Skrenes for not disclosing any information after they were asked… It was only a matter of time before I would find the information (which was supposed to be released to the public) anyway. Lets take a look at the details of the shady deal John orchestrated with his pal Jeff Skrenes and the Minneapolis City Council.
April 2008: John Hoff buys 3016 6th St. N for $8,500. John announces on his blog that he intended to fix it up and live in it. The house was NOT a boarded property and John claimed a rehab had begun before he bought it.
After he bought it, he was asked how he was going to bring the electric and plumbing up to code before he would be able to sell the property. John said in an email that he was on a first name basis with city inspectors and the city was keenly aware of his plans for the house. He never moved into the house.
July 2008: 3016 6th St. N was added to a list of houses the city of Minneapolis would buy and demolish.
August 2008: City of Minneapolis buys 3016 6th St. N from John Hoff but, sale information was not made available to the public and John Hoff refused to answer any questions about the sale.
September 2008: Tax assessed value for the property from July 2008 and September 2008, revealed the overall value jumped from $48,400 to $128,000 yet the county site listed the current tax value was as of January 2007… More than a year before John Hoff bought the house.
November 2008: Sale information is found on Zillow.com.
|Show all sale history See less sale history|
|* Transaction not included in Zestimate. More info|
I am not the only person who would like to know how John Hoff was allowed to sell his house without making any repairs. No explanation was offered as to how the house (not previously boarded) went from “livable” to needing to be demolished in less than 4 months.
In a four month period, John Hoff doubled his money when he sold his house to the city for $17,000 WITHOUT improving it. That is a profit of $8,500 for doing nothing other than make friends with inspectors, council members and neighborhood leaders.
The entire transaction reeks of under the table, shady dealings. I would ask this question directly to John but, he avoids anything that could make him look like a criminal that he claims he is not.
My question: Did John pay Capital Gains tax on the transaction? I doubt he did a 1033 Exchange when he sold the house.