All Forum Posts by: Deepak Jebar

Thanks @Brian Cohen and @Bill Exeter, I may not need to do a 1031 exchange after all to avoid taxes - I will check and verify with my tax consultant. I need to find a way out to take care of my NJ exit tax. I still work for the same New York company while I lived in NJ (I didn't change jobs since my move) - I just work from home now. Would be interesting to see if this might help!

This condo was my primary residence for 4 of the last 5 years. I am not sure what you mean by legally changing my address - I used to file taxes until 2 years ago using my NJ residence and last year taxes were filed using my WA address - does that qualify as changing residences legally?

Sure, will talk to a tax professional - thanks @Brian Cohen for your insights. If I can get proceeds upto $500k (as I am married) tax free, and if my condo sells for $650k (after commissions/fees) - would I be liable for taxes on the remaining $150k or for the entire sale price if I choose not to go through a 1031 exchange?

Hi all, I am a new BP member, mostly trying to read up and getting my way around on the site.

I moved from New Jersey last July and rented out my condo - making it a rental property. I bought a home here in Kirkland and I now want to sell my Jersey City condo and reinvest in a rental property (condo/townhome/multi-family) here in Washington state. I have a few questions, and I hope some of the experts and people who have been in my situation can help me out:

- Any recommendations for 1031 exchange specialists?

- Good rental markets to look at (my price range is around $750k, including a $200k mortgage) - I am thinking 2 rental properties (adding up to $750k) or a multi-family

- New Jersey seems to have an exit tax of 9% for non-residents. What are good ways to get around that? I am focusing on rental markets locally in Washington, but am open to suggestions to look at other markets - maybe in NJ itself or any other option.

Thanks!

Thanks all for the pointers. I had wrongly assumed that I couldn't take tax benefits on a rental property. Now that I stand corrected, going forward, I hopefully won't sound as dumb as my first post!

Hi everyone, I stumbled upon BP while researching a company my friend recommended: HomeUnion I'm excited to read success stories that allow people to have financial freedom and pursue what they like. My goal is to do that too! I'm a software engineer by profession living in NJ right across Manhattan. I own a small condo and was happy claiming tax benefits on the interest I paid on my mortgage. I now have to relocate to Seattle/Bellevue area, probably permanently due to my wife's job. I'm pretty sure I will be able to rent my apartment out easily, even though the rent won't be enough to cover the mortgage, taxes, HOA and other expenses (I have a 15 year fixed mortgage, 11 years still remaining). I'm not planning to sell the property as I think this is a decent rental property. Because of the relocation and that I'll have to rent some place in Bellevue, I'm seeking help to figure out what best to do to help me with taxes. As I won't live in the condo, I assume I can't claim tax benefits. As I will rent it out, I need to declare rent as income and pay more tax on it. And on top of that, I'll be renting a new place, atleast for the next one year, which is an added expense. I'm a newbie here and haven't read any of the recommended books on this forum (which I will get to soon). I'm looking for pointers around the tax situation. My taxes have been straight forward all this while - one W2 per year and tax benefits due to the mortgage. No other sources of income nor need for itemized deductions. I was wondering if people setup LLCs or trusts or something like that for rental properties that will help reducing taxes Thanks and looking forward to learn and get on the way to financial freedom!