All Forum Posts by: Account Closed

@Dave Foster thanks all! Just to clarify, the estimates we got were for a straight sale, not a partial. One accountant’s calculation was about 40k+ and the other’s was about 15k. Big difference. Being a landlord is ok for the most part, but we’d really like to pull out about 1/3 or so of the cash to pay off another debt . By the way, our QI does not seem to be familiar with any of the other 1031 options mentioned here.

Thanks for the tip to look at worst case scenario and depreciation - that would give us a good estimate. We’d be looking at tax at the 15% rate presumably.

Need help calculating capital gains taxes if we decide to do a straight sale vs. 1031. Need to pull out some cash and thinking we want to get out of being landlords but need some good numbers to make our decision. Have about 1 week remaining on 45-day clock to identify replacement properties if we proceed with the 1031 (monies are in escrow with QI), so need to wrap this up soon. Ran it by two accountants with access to our returns and got wildly different estimates , though I think they treated carryover losses differently in their calculations. Any resources out there to get exact figures so we can make an educated decision? Willing to pay for time & expertise. No kids or heirs in the mix , and would likely invest the remaining cash in mutual funds. We have an idea of how much we’re willing to eat in taxes but need better figures to make an informed decision. Thanks!

@Bill Exeter, I'm late to this discussion but have similar questions. We were told that for our transaction the amount owed would be approximately $15-20k in capital gains taxes if we do not go the 1031 exchange route, and  instead choose to cash out the entire 225K. If we do a partial 1031, and for example purchase a property at 150K, and cash out the remaining 75K, as I understand it the depreciation recapture is taxed against that 75K but capital gains taxes are not due. Is  the amount of the depreciation recapture then "credited" when the time comes for the sale of the new property, and about what percentage of the entire 75K amount would then be due?  I realize that without all the numbers it's tough to do a calculation, but trying to get an idea of a ballpark figure to see if this is still worth it. Thanks! 

 Lakeland does seem to be pretty desireable these days.  Zillow seems to think that at least some of the zip codes will increase by alot next  year, if you can rely on their predictions. What kind of return are you getting on rentals? 

Hi! Did you ever get a reply to your questions? I"m also originally from that area and looking for some up to date info on good neighborhoods for rental properties with good returns. 

@Ozzy Sirimsi  could you be more specific, like what areas of Baltimore do you recommend looking at? (I'm in DC ...) 

Hi Lou ! I am also a rental property investor in DC /Northern Virginia and would be interested in a meetup group of like-minded investors. There is a Nova REI group on Facebook but not sure if they have regular meetups. Hope someone else chimes in with more info.