All Forum Posts by: Scott Ball

Quote from @Kevin Recupero:

My father and I are getting into real estate after a year of doing paper learning(books, conferences, etc). Based on advice from bigger players we are looking in the Harrisburg area. I know one of the key factors to being successful is having a great team. I was wondering if anyone had suggestions on property management companies, realtors, and/or even brokers. And if you have just general advice for the PA environment please let us know, we are eager to learn and get started on this new investment adventure!!

 Hi Kevin, did you manage to build a team? I'm planning to do the same and am looking as well. Any good people you can recommend would be appreciated. 

Thanks 

Thanks 

Quote from @David Krulac:

@Kevin Recupero I ama Real Estate Broker in Mechanicsburg. I also did Bigger Pockets Podcast #82. One of our primary clients are investors. We also participate in various REIA groups around the Harrisurg area. Was at one last night at the Hilton, well attended and great program with a speaker that has 800 rentals (no it wasn't me).

 Hi David, 

I am also looking to build a team in Cumberland County - I've sent a message to you with my details as I liked your podcast. Thanks, Scott 

Quote from @Dave Foster:

@Scott Ball, Depreciation can start on your rental property when it is "placed in service".  This is when it is ready to rent.  If you buy a ready to rent house then like @Andrew Syrios said it would be when you buy it.  But if it is not rent ready you do not start depreciating until it is.  

1. Yes, Each new buyer gets to set up their own depreciation.  However, remember that each time that property is sold the depreciation that has been taken must be "recaptured" (paid back) to the IRS by the seller.  So it's not really a gift from them except for while you own it.  The way to avoid having to recapture depreciation is to do a 1031 exchange every time you sell.

3. A 1031 will not reset depreciation.  You will get to continue using any depreciation left from the old property.  And if you purchased property greater than you sold then you add additional depreciation to take.  If you continue to 1031 up you will always be adding to your depreciation write off.

So for #2) - If I kept 1st property for 20 years and sold for $200k and did 1031, and bought a new property for $300k I have full 27.5 years to depreciate plus the 7.5 years I didn’t use from property 1?

Sounds good yes pls

Recommendations needed for a great CPA in Ohio pls. Any part of the state is fine as long as they know all the tax strategies for real estate investors and are ideally investors themselves. 

I need a bit of clarification on depreciation since where I live overseas they calculate it completely differently. 

My understanding so far is that you can start depreciating your property once it is rented and you can fully depreciate it over 27.5 years. And it's only based on the property, not land value. Assuming I am not depreciating the chattels or heater, etc. just the building on a buy and hold.

If I buy a property for $110k this year, and land component is $10k, I can depreciate the $100k as mentioned above. 

1) If I sell in 20 years to another investor for $220k and the land is now $20k, their cost base for depreciation is now $200k and they also have full 27.5 years?  Does it ever end? If every 20 years a new person sells can this keep going forever?

2) If I sell for $220k in 20 years and then do a 1031, and buy a new property, does my new property I have a new 27.5 years to depreciate or am i somehow limited based on the first purchase?

Thanks! 

Haha! Yep, I still sound as American as ever.

I sent you a message - thanks for reaching out. 

Thanks Lara, I am open to any area as long as the numbers work and it's a good area. 

Hi everyone, 

I am a US citizen, former USMC, who has lived in Australia for the past 20 years. I've done alright as a property investor over here and even ran my own real estate agency & property management company. My folks are getting older in the US and long story short I am selling everything here and will be starting fresh to move back to the USA. I have been reading a lot about the different things like notes, private lending, etc that isn't common here as all I have done is buy & hold and a bit of lease options, plus running the agency. Anyway, I was wondering if there are any former Marines or any military vets on here that I can connect with to shorten my learning curve so I can fast track things. Doesn't necessarily need to be former military, but I just want to find a team I can trust 100%. 

Thanks, Scott  

Quote from @Allan C.:

@Scott Ball depreciation starts at the time you own the building, not when the building was constructed. A 100 yr old building can be fully depreciated 3 times by 3 different owners, but each individual owner has a maximum depreciation amount that is the full cost basis of the building.

You can review 1031 exchange as the next lesson to get more miles on depreciation (and capital gains tax deferral).

 Wow, see that's something different I didn't know - over here in Australia it's based on the age of the build so thank you!!