All Forum Posts by: Chris L.

Hypothetical situation: 

Sale price-500k

Cost basis-300k-50kdepreciation =250k

1-Let's say at closing I want to place 400k into the 1031 and the remainder-100k- I would like to cash out at time of closing. I'm trying to figure out how this would work with a bulk sale notice because I have to pay a portion of taxes at time of closing for bulk sale.  Would I essentially just transfer 400k to the intermediary and pay the bulk sales tax due at closing out of the 100k boot? Also, is anyone familiar with the ATTD Form below?  If so, could someone help me understand how it's filled out. 

http://www.state.nj.us/treasury/taxation/pdf/ttdv1...

Just trying to figure out-using hypothetical numbers above- what values I would place in # 6-9. 

2. If I take 100k of boot, would that 100k be taxed at capital gains rate of 15% since depreciation gets carried over to the new property OR would I have to pay the depreciation recapture tax rate for 50k and capital gains tax rate for 50k?

Any input would be greatly appreciated.

Hey @Jessica Zolotorofe, lets say I dont use the 1031 and I have a bulk sale in NJ. I reside in NC but my LLC is in NJ and is registered in NJ , would I have an exit fee since I live in NC or would I just have to pay the bulk sales fee. I would imagine I wouldnt have to pay the exit fee if I'm paying bulk sales...seems like a duplication...

Separate questions

@Dave Foster, is the fee for the intermediary fora 1031 considered a settlement cost?

http://www.state.nj.us/treasury/taxation/pdf/ttdv1.pdf

I was just looking over the ATTD form in advance to figure out how to fill it out once my house is sold. I have some questions:

1. For #3 Cost after depreciation-I'm assuming thats cost basis -depreciation. Is that correct?

2. For #5-NOL carryover- what is that?

3. For #6-IRC SEction 1031 exchange-would the fee for the 1031 intermediary go in there or is that the amount of funds I will carry over to the 1031?

4. For #8-Amount of gain deferred-is this the amount that I will be putting into the 1031. I.e. If the sale price less settlement charges is 300k and I want 300k to be carried over to the 1031. Would #8 be where I write 300k? Or do I write that in the section #6?

5. What are installment proceeds?

Thank you for your help folks!

Just wondering what the typical attorney closing fee ranges in BergenCounty NJ. 

@Johnathan Boyle

The new guy doesnt have any contingencies. Just not sure what he will do during attorney review and/or if he will play games and lower his price. So far several builders that came in offered one number then lowered so afraid this new guy might do the same, whereas the present offer has already gone through negotiations on price. 

@Jessica Zolotorofe, do you know if i would have to pay an exit tax if I use a 1031 exchange in NJ?

I'm presently under attorney review and another builder came in with an offer of 13k higher on a tear down I'm selling. HX-I have had several builders make offers and then days later they would lower the offer secondary to restrictions on what can be built on the lot and a need for variance to build larger than a normal duplex. My concern is that this new guy would lower his offer in the middle of being under contract while the present guy already knows the restrictions and is set on the price. What would you do?  Go forward with the present offer or other? 

@Bill Exeter, if I typically pay my taxes yearly for the LLC-not quarterly-and I am unable to find a property before day 45 and the funds are returned to me on day 46, would I then pay my taxes as usual in April 2018? Just trying to get a clear picture in case I can't find a property as things are tight in NC

Thank you for all your input everyone!

Is it typical for the seller of a home to pay for preparation of the deed and one half the title company charges for disbursments in NJ?