All Forum Posts by: Niman S.

Hi Joey,

The recapture tax is applied to depreciation ALLOWED, or depreciation TAKEN, whichever is greater.

So in other words, lets say you took no depreciation, or less than the IRS says you were supposed to. The IRS will recapture based on the depreciation ALLOWED (determined by taking the straightline deduction over 27.5 years).

It is possible for depreciation TAKEN to be greater than depreciation ALLOWED, for example if you accelerated depreciation deductions, and in this case (when TAKEN>ALLOWED), the recapture is applied to depreciation taken.

That's gotta hurt (not being able to take loss deduction), but you may be better off that way...

Bottom line is that you have a loss carryover that's going to carryover until.... well, forever as long as you're making that much money.

Perhaps consider a different strategy that allows you to take advantage of the loss carryover - Jeff Brown wrote an awesome article you should check out here: http://www.biggerpockets.com/renewsblog/2010/01/05/150k-year-excellent-strategy/

Josh is the man.

:kewl:

Many items paid on settlement can be included in your calculation for basis to increase the deduction. Check out IRS pub 551.

Chapter 6 of Every Landlord's Tax Deduction Guide by Stephen Fishman has a really good explanation of segmented depreciation and how you can go about doing it.

I'm sharing a list of common assets with IRS approved class lives that you can use if you want to segment the deductions (use cost segregation, minus the cost segregation study). http://www.trexglobal.com/assetlist.pdf

Hope that helps!

Hi Gamal,

This is a recurring question in these forums. Just do a search for "property management software" http://www.biggerpockets.com/forums/search?search=property+management+software and read what other members have wrote.

You can check out various property management software programs here: http://www.biggerpockets.com/online-property-management-software.html

Hope that helps!

Ya I'm the dude.

Life would certainly be more interesting if I was the chick.

http://www.biggerpockets.com/online-property-management-software.html

I am going through the same exact process myself. Luckily I can offset the extra income on the paid off rental using my other rentals - so pretty much a no brainer for me. The paid of rental is in a good neighborhood, good for long term, and will probably be great for a 1031.

Also if you are serious about options I highly recommend taking an options/futures/swaps course at a local university, check with the finance department about open enrollment.
Fundamentally, you want to understand what options are, how they work, and how they are priced (Black–Scholes option pricing model, etc).

Only with a firm understanding will you be able to employ successful arbitrage strategies.

I recommend fool.com and investopedia.com.