All Forum Posts by: Mike Maruska

Thanks Tushar and Henry and Jack. I know my direction now. I will probably set up a non revocable trust. The goals would be equitable distribution to the 4 blended marriage kids, fair compensation to the kid who is executor,  and any instructions on whether to demand the 4 properties remain as income for future generations or sold to buy cars, trains and automobiles for the decendants.

Thanks Tushar P. I just looked up that the 200k depreciation will be taxed at a 25% rate or 50k   even if i move back in for 2 years , did I read and understand that correct? and since my baseline started at 275k  and the sale price would be if sold 400k - then 400k minus 200k dep =200k total gain all of which is taxed at 25% requardless if i move in so same tax move in or not ( since she don't want to move in )

Thank you Henry ,Dave and Dan .  Not interested in an exchange as much as transfering to son once I and my wife pass. Fear ( if I pass first) of 2nd wife selling condo and primary , using money   meant for my kids to fund her "new loves" business venture- has caused me to explore a non revokable trust where the trust owns everything and rents while wife 2 is alive is hers but upon her passing each kid gets a house.  That idea is sidetracked and exploring the obvious move back in for 2 years method. So the new question is: Can I sell my condo to my son now, for 400k  thru a land contract say, and upon my dearth forgive the loan assuring he does get the condo instead of gambeling with wife 2 plans or dealing with a trust- would that reset the baseline like my death would-a loan forgiven --his price of 400k would be his baseline no? or would there be another tax gift maybe? i am not familiar with since this is new idea and what would that rate be?

So 270k baseline in 2000 condo . Rented in year 20 (2021 ) @2350 mo-

I have what account calls "saved" credits on depreciation of 50-75k due to income exceeding 150k annual .

I /(accountant) depreciated my $270,000   rental $10,000 per year for 20 yrs as 1/27 th per year rule.

    {Todays baseline is calculated :( 2000 value) $270,000 - total depreciation takenover 20 yrs or  $200,000 = $70,000 dollars current baseline.} 

My understanding is currently that on a sale now of $400,000, the capital gains due would be  sale price minus baseline {or $400,000 - $70,000=$330,000 x $20% (i think)}

 Using 20% for this =$66,000 tax cap gain due on sale.

   I can use the saved depreciation to offset this I am told but if I figure another way I can use the saved unused (50k? approx) depreciation  against any tax due on my return say when i retire and make under 150k.

The only way I found to avoid the $66k cap gains is to die and leave condo to kid, who then has no cap gain tax due, and the kids new  baseline increased to $400k -a reset  

Is there another way?  

I am 71 , worked hard dealing with a ton of bs renters-and may want to not wait for my "windfall" and i know my wife don't so is this my only option to not give sam 66k ? 

Police say he has rights- forced me to file 30 day notice quit- even though no lease with me the owner-agreement was with ill son. They stole the washer dryer and the door off the fridge---just got court order they need be out by feb 1----i have a allstate landlord policy rental. Wife asked what happened to washer dryer he said "I dont now I was not home.  Now what can I do? 1000 deductable---smoke on wall damage and unseen damage until Feb 1 when I get my brand new 800 sf house built for handicapped son back. Please advise

Mike Maruska Local 98 Detroit 65yrs old accidental landlord. I have 2 former primary's one from spouse now valued @90k rented for 16 yrs @800 and a mortgaged (176k balance and 15yrs to go) Luxury condo @300k leased @2k. I am now here to figure out what to do in order to either pass it all down the 4 kids soon or set up some kind of trust. I work for Chrysler and have income. Thanks for reading this and I look forward to learning and helping members with plumbing issues if I can add anything. Go Blue