All Forum Posts by: Jacqueline Gardiner

HiJim, I'm sure there are others who will be better at helping you with the calculation, but you'll need to provide the total depreciation that you took on the property during the 15 years that you rented it out. Also, do you have any other capital losses or gains? And, do you have any passive losses from other properties that you might use to offset the capital gain? (Check your most recent tax return for passive loss carry-overs.) Or, can you generate such a loss by making another purchase in the year that you sell? It sounds like you haven't sold yet, which is good, so you might want to consult with a tax professional to help guide your decision. Other strategies to consider are: (1) investment in an opportunity zone fund (though I don't believe the benefits are as good as they were a few years ago), or (2) investing the funds in another property or fund where you can get bonus depreciation in the first year. GOOD LUCK!

Thank you, @Basit Siddiqi. I was over-simplifying, but it needs to be rented out to show that was the intent. And, the rental period should be at least a year or two before you change your mind and sell. Correct?

No, a ground-up construction project is more like a job in the eyes of the IRS. 

Hi Kenny, I think either scenario would work. BUT, I think you need to hold the house that you're currently building as an investment property first. Do a search for similar subjects, but as I recall, you probably need to hold it as an investment property for at least two years before undertaking a 1031 exchange. 

Hi Walter, What about selling the portfolio to someone you trust using an installment sale? or, perhaps selling off individual properties using installment sales (potentially reducing the risk)? Or, hiring a property manager to take care of much of the management work and then, over time, selling off parts of the portfolio? You might also 1031 into a single property that has a NNN lease or has professional management. I am invested in syndicated deals and occasionally see that they will accept money via a 1031 exchange.

https://podcasts.apple.com/us/...

I believe that they go into it on this show. Hopefully this helps. 

Hi Pat, It is my understanding (from listening to the Real Estate CPA podcast) that the carry-over losses from only the property that you are currently selling can be used to offset the gain on that particular property. Then if you have any additional carry-over losses from the property that you're selling, they can be used to offset other income. I don't believe that the carry-over losses from your other 15 properties come into play. You might want to look up that podcast and then look for the particular episode that discusses that. If I can find it easily, I will post a link for you. 

You can use a HELOC to get more funds, but your replacement property needs to be more expensive (approximately 108K or higher). Or, you can purchase a 2nd replacement property that will bring your total up higher.

@Dustin Allen When I pull up the link, it shows 11/30/21 at 7pm. Is that right? Or, should that show the 14th of Dec? Thank you.

Thanks, Dustin.