All Forum Posts by: Jason Thomas

Hi Charles,

Am I able to do a cash out refi and use that money tax free to invest in something else?  What would be the terms that would be the most profitable?

Also for all the 1031 experts out there.... is it possible to sell my rental property and invest the money in something similar but not exactly the same like real estate lending (eg peer2peer like peerstreet?) or something else rather than buy another property.

Hi Shannon,

Could you explain what you mean by putting the property into an entity?  Or how tranfering title before escrow avoids the capital gains tax?

i wouldnt be paying the same CG if doing an installment sale.  I would pay 0% up to my maximum allowable 70k of taxable income including CG in a year since i fall into the lowest federal tax bracket. If i received it in a lump sum i eould be taxed on all gains after the 70k in that year.   Not sure how California state tax would treat this.... I would have to check this out.

Wow thats possibly an option then.  Is the full $500k exempt or is there some kind of proration on number of years rented vs primary?

If i were to move back into the residence for a 2 year period would i get the full $500k capital gains exemption?

I thought that might be more bad news when it came to a 1031 exchange.  Trying to get all that money invested in a timely matter would be difficult also im sure. 

Seller financing still may be the best way to avoid the tax but i dont how installment notes or some other form of payment to me over a number of years is seen by the IRS in these regards

I do know that i pay zero in capital gains tax up to $70k a year because i have almost no taxable income coming in each year.

Thanks for confirming my tax problems.  Im guessing i will look heavily into seller financing.  Any experts out there that have a opinion on how to structure financing to mitigate tax loss for a retiree?  Also if i were to do a 1031 exchange  if I netted $400,000 in proceeds would that be the amount I need to invest  or would a $750,000 sale price amount need to be invested.?

Ive been trying to confirm the tax consequence of selling my rental unit and am so far astounded at the negative tax implications ive found.  I purchased this unit in 2001 for $400k and converted it to a rental in 2005 when its Fmv was $750k.  Im now considering selling it in 2016  for around $750k.  What ive found is that the adjusted basis on the gain is calculated from the original purchase price and not the Fmv from when it was converted.  This seems ridiculous since all the gain was from when we used to live in it.  Is this really the case??  What are my best options besides a 1031 exchange.  Is it possible to sell the rental and have the money distributed to me in a note over a 5 year period so that my capital gain tax is reduced since im retired and have no income and would fall into a 0% tax bracket up to 70k in taxable income a year??  Any other possible loopholes?

hi all,

My question is in regards to capital gains.   I was thinking of delaying a sale of a long term rental upon my retirement from my job.  If I do this in my first year of retirement with no earned income what is the long term capital gains rate I will have to pay.?  I'm trying to figure out ways to lower my tax rate.  I'll have gains of approx 300k and 15yrs of depreciation recapture to think about..

Thanks