All Forum Posts by: James Schulte

So if we sell the house with the above #s still in play, our approx. gain is $475,000 and we decide to perform a 1031 and the new property costs $475,000, what will we be paying in taxes. If we spent right at the same amount that our gain is what would be the tax implications then?

We have considered the 1031 exchange or a partial but Destin is a hard core sellers market currently and anything we would exchange for would be at its near record level with no room for building equity or profit. Purchasing another rental property for 1.2m+ is not something we are ready to do at this point, one bad rental year and things spiral out of control real quickly. We are obviously very spoiled with the gain we have built up in this property, we were very lucky, at the right place at the right time, gambled spending a lot of savings to make this happen and have put a lot of physical sweat equity in over the 4 years. I do not think we could get things to line up like this again so soon, taking the hit on taxes now still lets us walk away with around $400k profit after taxes and the amount paid down is about $250k so we are sitting pretty good in the grand scheme of things. We are thinking about putting the money in some investment funds and when the housing market takes its next downward turn we will have a nice chunk to reinvest in property.

Thanks for all your input and look forward to any further knowledge from the experts.

We are residents of Missouri and have a Florida LLC that owns a short-term rental home in Destin, Florida.

We have owned it for almost 4 years now and would like to sell the home.

The purchase price was $779,000 and sale price will be $1,200,000.

We understand that we will pay federal capital gains and we understand the depreciation recapture aspect but we are unsure exactly what taxes we will be on the hook for since we are residents of MO and the home & LLC are in Florida.

Do we also have to pay MO income tax on the gain even though the LLC and house are in FL?

Is the gain from the sale added to our income to determine which federal capital gain rate we will pay?

Our normal income falls in the 15%($77,201-$250k) bracket.

Thank You