All Forum Posts by: Payman A.

 Luckily no and i don't like owning rental property in CA.  Selling in NC and replacing in LA and possibly NC

Actually, I may have seen the light since my last post and specially after considering future value of this transaction's tax liability (my first sell you see).  My not having liked the deferred tax scenario was a based on the way I conduct day to day business/activities, not because of any significant thought or knowledge on a 1031 exchange.  On that note, can you please tell me if tax on this transaction would later be calculated based on today's laws or those in effect when proceeds are finally taken?

 I appreciate the reply.  I'm using a taxable income example and what you outlined confirms what I was thinking.  So even if you are exempt from CG tax because you do not go above the 2nd tax bracket, dep.recapture is always considered ordinary income.  Hmmm...might have to consider a 1031 even though I don't like the idea of deferring anything.

Yes, pretty much right on as to when it was purchased

Hi all.  So after looking through pages of previous posts/replies, I did not find a topic that covers my exact question so I'm submitting this one.

Can someone please clarify how capital gains and depreciation recapture are taxed when selling a long term investment if for example:

- There is $60K worth of depreciation

- There is $15K worth of gains on top of depreciation

- Taxable income for us, a married couple, is $50K

Thank you all in advance,

Payman

 Yes, thank you. I've already sent instructions to my agent to ask about the history but as mentioned in another reply, I'm thinking that asking for proof of payments is a bit much.  Would you agree?

 I appreciate your reply.  I certainly will ask for rental history though will probably stop short of asking for proof of payments.  I met the PM and they seem very professional, experienced, and organized (not that these attributes guarantee anything)

 Thank you for the info which confirms that at least some agencies do keep records like I thought they would.  Trying to see if I can gather any info on this property before we close escrow, however, continued payments should at least mean that units are in current compliance. 

 You definitely are blessed and thanks for the reply.  You are right about areas and inspection (and even inspectors) being different so I'm trying to find specific info from the agency...difficult to get a hold of anyone.

I appreciate your reply and advice.  I already have all lease copies with rent/deposit details and sounds like your recommendation would be to just confirm the timeliness of the payments.  Seller's agent is also managing the property at this time and as much as I want to avoid the scenario you mentioned above, I don't want to be over the top either (we may be doing more deals with her and she may continue managing this property for us).