All Forum Posts by: Michelle C.

Can you be more clear or point me towards resources to back up this claim? It's a townhouse. It doesn't needed any repairs and the HOA covers the major ones. Even when the market was at the bottom it rented for more than mortgage/HOA/taxes/insurance.

Yes easily. I have considered reinvesting in the Phoenix market, but I've read that finding deals here is a bit challenging. 

Thanks for your reply! Rents are very high in the area right now, they have gone up significantly in the last 1-2 years and vacancy is very low, 1% or less. I could easily rent the unit again for $1900 a month (or more), although my previous long term tenant was paying significantly under market value. There is pending rent control in the area, but it will not affect my property. I do need some income right now to offset some small debt I have, although I could pay off the debt if I sold the property and wouldn't need the income any longer, but I do like having income coming in from my investment. I'm just not sure that it's worth paying 30k in capital gain/depreciation recapture tax. 

I have an investment property in Santa Rosa, CA that I bought in 2009. Loan on the property is for 112k, comps support that it's worth 355k. I did live in it, but it's been a rental for over 3 years and I'm outside the primary residence window. My yearly income is zero because of deprecation and I don't have income outside the property, but the capital gains are going to throw me into the higher tax bracket. It's possible I could qualify for a partial exemption as we did rent it because we moved out of state for a job relocation, but no CPA can give me any clear cut answers to whether or not the IRS would accept a safe harbor moving exemption after 3 years. I'm not interested in doing a 1031 exchange. It pulls significant positive cash flow as a rental, but we're probably near the top of the market in terms of appreciation. Should I sell it and pay the capital gains or keep using it as a lucrative rental? I don't want to reinvest in other real estate at this time, but I would likely reinvest in stocks or other investments. Opinions? What would you do? 

I'm getting ready to sell an investment property that I have in CA and I'm looking to consult with a real estate tax professional about the tax implications/capitol gains. Any recommendations?