All Forum Posts by: Tony Norella

@Kurt Moeller, yes i got better answers here than anywhere else i tried.  Good to know it helped someone else out also.

@Kurt Moeller - thanks for hijacking my thread...   :)   actually i'm learning more from it.

@Dave Toelkes, so if the FMV at time of conversion is lower than the price i bought it at, i end up paying more taxes?

@Dave Toelkes @Austin H.

now i'm confused. I looked at my last years tax return and form 4562 for this home. It shows the depreciation basis at $205,000 and land at 40k. Didn't know i should have used FMV - thanks to TurboTax. And FMV at the time was around 180K with land at about 36K. But who determines FMV as it could be a wide range since there was no appraisal at the time, only me checking sales in the neighborhood. Prior depreciation is at $27,024 and current depr is at $7454. Still think the sales value should be around 265K. my marginal tax bracket should be 15% if i don't count the income from this sale as my AGI should be below $40000 in 2017. how does that change things?

thanks again guys..   how do you find a good tax advisor.

thanks guys.   one more question on the 1031 exchange.  could it be exchanged into raw land.

thanks Austin.  question on the 1031 exchange.   can it be into a lower priced rental or does it have to be higher priced?   also, could we do a 1031 change and then buy a home that we eventually live in?  maybe a year down the road?

here's the thing i don't know.   we bought the home for 243,000 (not adjusted) 10 years ago now but when we moved out 5 years ago, the value was only about 180,000.  Today the value is about 265,000 (minus costs).  We have taken @ $37500 in depreciation over the 5 years.

We are thinking about selling a home we own.  We lived it for 5 years and because we were under water on it, we couldn't sell it so we rented it out and bought another home.  We have rented it for 5 years now.  Is any profit on the sale excluded from capital gains?  or is it treated like a rental home and all profit is subject to capital gains?