Cost Segregation Done on Property, when is the best time to sell?

[Greg Miller]

Hello All, 

A couple of years ago we did a cost segregation on a condo we own in SF. I helped to balance out a year of high gains due to stock cash out. The condo value is still slightly lower than what we purchased if for in 2017 but inching up closer. Does anyone know whether it is better to sell it when it is below market value or if it really doesn't matter? Thanks in advance for any perspective. 

Greg

[Dave Foster]

@Greg Miller Because of the cost seg when you sell the property, you would have to recapture a lot of the depreciation even if you sell for "a loss" as @Bill B. said.

@Sean Graham is spot on, a 1031 exchange would allow you to defer that depreciation recapture, and if you purchase larger more real estate than what you sold, will give you an additional depreciable basis. Which could help with this years income problems.