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Updated almost 6 years ago,
Lower taxes to the max when selling...depreciation
Hello
Looking at personal house and rentals and depreciation...
I havent sold yet....I have a few rentals that I have been holding....when it comes to sell...how are you guys lowering taxes to the max?
On depreciation...let's say you depreciated a house for 10 years or 27 years...streightline...and you go to sell. How does one get hit by taxes by IRS on this?
If house sells for 300,000 dollars...depreciated on original value bought let's say 100000 dollars...at 27 years....so on year 30....all depreciation is used up...and one sells for 300k....how would the numbers look?
300k minus 100k. Equals 200k in profit....so taxes would be paid on this....then how would depreciation work onthis number? Maintenance and repairs over 30 years. Do those subtract? Advertising..property management fees subtract?....
Would like to figure out how to best keep what records I need to help me retain most of that 200k from all the taxes. ....
Can anyone assist?