All Forum Posts by: Michael McDevitt

Be careful! Once, I told the two tenants of a two family I would be increasing the rent to FMV. The seller also informed his tenants that their rents were sure to increase and they would have to sign leases.

I got a call from the guy in the first floor apartment, asking if I would come over and discuss a new lease.  i went to see him and he let me in the apartment.  Three of his friends were waiting for me in the living room.  i am sure I was due a beat down or at least the threat of one.  Luckily, I was thinking fast and made a move before any of them could do anything.  The tenant, who was between me and the front door, got thrown out of my way and out the front door I scrambled!  After I got home, the tenant called and apologized and agreed to leave the apartment rather than have me file a police report.  He did some damage (minor stuff) to the unit before he left. But, I was just happy he was gone and I didn't have to visit the hospital.

Since that day, I am always armed when I deal with a REI situation like that. I have a concealed permit, so no one ever sees my weapon and luckily, I haven't had to use it. But, I will never get caught unaware again.

I am a CPA, with 30 years experience.  

First, please see your CPA because this is not a simple answer.  Generally, you are taxed at 15% for a long term gain (owned more than a year).  Note, the gain may be higher than you think, if you have been depreciating your cost basis since 2007.  If your income is high enough, the tax rate may be 20%.

Also, don't forget your state will tax the gain too, if there is an income tax in your state (TX doesn't).