This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

I'm also checking with some contractors and attorneys in my network.  

Am hoping to use this as a network to build and learn.  

So just like most strategies, if you do not have the required network and insights to CORRECTLY execute, than get the team that does.

Whether you’re experienced or just starting out, let's network, share insights, and discuss opportunities in this region.

Hey All, I am a CPA who works directly with Property Managers.

If you're looking to invest in Jerome Village, definitely factor this future charge into your cash flow calculations and maybe have your CPA take a look at the exact language in the Declaration. 

Aiming for each part of the business to eventually fund itself is a solid plan, and a real estate CPA or attorney could help fine-tune everything for taxes and structure.

They encourage networking, discuss market trends, and discuss development strategies, aiming to support growth in the industry.Good Luck!

I just started and would love to network!