Calculate Capital Gains:• Selling Price: $290,000• Basis: $166,667• Capital Gain = Selling Price - Basis = $290,000 - $166,667 = $123,333Depreciation Recapture• Since no depreciation has ever been taken by any owner, there will be no depreciation recapture to consider in this case.Final Capital Gains Tax Calculation• The total capital gains that Person C will be liable for upon selling the property will be $123,333.Summary• Capital Gains for Person C: $123,333• Depreciation Recapture: $0 (since no depreciation was taken)My QuestionsIs the above estimated capital gains tax correct?

@Ben Magee, In my state (PA) a tenant may break a lease WITH NO PENALTY if a unit is uninhabitable for an extended period and the landlord has been unable/unwilling to correct it.

Nicholas is correct.

To intentionally reduce the leverage more than required is a foreign concept to me.Best wishesDan, financially you are, of course, correct.  

I've only done one syndication lately and you are absolutely correct.

To make sure I understand, these are done by the sellers correct?

I stand corrected—it is a cabin, not a condo.

Am I correct on my thinking?

Hello,I have been hearing on BP podcasts that tenant turnovers can equal about $6000-8000 (one host even said up to $10k, if I recall correctly) when lost rent and repair/upgrade costs are factored together.

Title companies make booboos all the time then need to do corrective deeds