All Forum Posts by: Sattir Bitti

Now that understand that part, now I need to figure out 1250 recapture rules, for an add back of previously deducted depreciation.

I cant figure out how to find, on my tax returns, the total depreciation over the years up to 2023 on each property. I need to deduct the total depreciation from my Cost basis for the property being sold to figure out how much is subject to capital gains and how much is subject to 25% depreciation recapture. I also cant find total basis on 2023 for that property

All - received a marketing mailer today for my SA properties. They essentially protest your property tax and then you just pay 25% of savings. Is this legit? Or is this company a scam?

 I've used aggregated PAL to reduce profit from flipping activity's capital gain.

Hey y'all so my wife and I are starting our investing journey in the next few months. We are selling our home in sd august and relocating to boston. I currently I have a joint savings account with discover that's 3.6%. I may switch over to wealthfront. My question is this, being a newb when it comes to FDIC insured banks etc, let's say I have 1 million cash, how do I best spread this apart in various high yield savings accounts? I read that my wife and I can each have account with 250k and then a joint for 500k max to be fdic insured. What if I did two joint accounts but with two separate banks? Like a joint at wealthfront and joint at discover.

@Bud Gaffney, And @Sattir Bitti, the 200% rule that Bud is referring to is for identifying your new properties.  There is no limit on how much you can purchase.  If you name three or fewer properties on your 45 identification list they can be of any value.  Sell for $100K and identify 3 $5 mil properties.

But if you name 4 or more potential replacements then either the total value of the list cannot exceed 200% of the value of what you sold.  Or you have to purchase 95% of the aggregate value of the list (in essence you'd have to purchase every potential identification).

@Sattir Bitti, The closing date of your purchase has to meet the time lines of each of the properties you are doing the 1031 on.  So clustering those sales is important.  Explore using contingencies on your first sales contract that will allow you to extend that closing if necessary so you can close your second sale close to the same time.

Another tip would be to go into contract for your purchase before you close your sales.  But extend the due diligence period of the multi-family property if needed to buy you some more time.   It's not uncommon for commercial and larger MF properties to have much longer due diligence periods.  This can work in your favor.

What your describing is what we call a "consolidation exchange".  Selling several to purchase one larger one can positively impact your management load and expenses.  And usually the smaller units of the MF will generate more dollars in rent per sq ft.  Consolidation exchanges are a very common strategic move for investors.