All Forum Posts by: Bob Metry

@Mike Reynolds why not contact your local bank that you already worked with?

Thank you @Leslie Pappas and @Ashish Acharya!

@Lance Lvovsky gotcha! Thanks for your insight!

Thanks so much @Lance Lvovsky! Can you explain when investment income tax would occur? My situation would likely be I would be paying capital gains taxes as I would be selling a rental property. 

@Justin Fox thank you for this. I am curious if that 25% cap still applies in 2021 and 2022. I also would like to know most importantly what is the minimum deprecation recapture tax rate and how that is determined. 

Any accountants able to chime in?

How do you determine the the tax rate for depreciation recapture? When you recapture the depreciation when you sell a property, is the recapture tax rate based on your ordinary tax rate at that given time? For example, if I have $100k in deprecation to recapture, and my ordinary income tax rate that year is 15%, would I pay $15k in tax? If I my tax rate were 0% would I pay $0? Is there a minimum and/or maximum depreciation recapture tax bracket?

Thank you in advance!

@Joseph Shapiro I think if you could clarify the details readers could provide better feedback. 
How much did you purchase the property for? 

How much have you invested in it?

What do you believe the market value to be?

@Sam German since you are open to moving on a somewhat frequent basis, I would consider living in the homes for 2 years and then selling instead of renting. your gains would be tax free up to $500k since you are married. I would then use these profits to buy rentals and/or buy another primary residence and repeat. 

@Brian Tschida so your purchase is $275k + rehab $160K = $435k but you are saying ARV is only $370k?

@Dennis Maynard if your client has zero debt on $15M of real estate, wouldn't it be cash flowing "extremely well" vs fairly well?