All Forum Posts by: Account Closed

Ellie,

How does recaptured depreciation work in this scenario (5 years tenant occupied):

Purchase price $600k

Rehab: $100k

Sale price $800k

Gain: $100K

I switched accountants, I believe my old accountant did not depreciate the property at all since it has been rented. My new accountant stated that I didn't have a choice & need to depreciate property so she's looking into that.

Yes property has been a rental for 5 years, so it is classified as an investment. But, the part that doesn't make sense is the usage of the gain. It would make sense to use the gain for anything, regardless of the property price.

For example (property held for 5 yrs for rental):

Buy property at 100K

Rehab property: 10K

Sold at 111K

Profit: 1K

So the next property has to be purchased at 112K?

Purchase price $600k

Rehab: $100k

Sale price $800k

Gain: $100K

Is it possible to take the $100k Gain & buy a $100K property cash w/ 1031 exchange?

Purchase price $600k

Rehab: $100k

Sale price $800k

Gain: $100K

Is it possible to take the $100k Gain & buy a $100K property cash w/ 1031 exchange?

Well, I am looking for lenders who overlook the 6 month seasoning requirement. I would like to start buying faster and not waiting 6 months between properties.

I am very interested in learning about lenders who do this as well. I am in the same boat.

What are some other resources that people can use?

So what did you end up doing?

I must say, you did a damn nice job there. I love those floors. What are some other good resources for hardware?

Just checked out your "abandoned house" project and it was spectacular. I love what you do with the wood floors. That finish is superb.