You thought an extra $240k, they thought an extra $300k, and you settled on $270k.The new taxation for the seller is:- nothing now- if exercised in 2025, they sold the property for $330k in 2025- if expired in 2025, they keep your $60k and report ordinary income of $60k in 2025

First time posting and getting into the investment scene, I currently have a single family home that was my previous primary, and looking into purchasing my 1st true investment property, trying to find some advice on the financial aspect of the purchase, here's my scenario;Currently going through pre-approval with the builder and I do have liquid assets enough to cover the downpayment for the property (40k) but I do have a car note (41k, 800 monthly, extra 500 to principal monthly) and a Patio upgrade (25k no interest till March 2025).

@Kevin S.When you take RMD from an IRA or 401k, you pay ordinary income tax on the distribution amount.

Since that decoupling, there has been a long stream of "rah-rah" shows that IMO did not focus on ordinary people, bringing a sense of reality back to the process, and inspiring people not by stoking BS dreams of Grant Cardone (who's Grant Cardone, my long-running joke) but by highlighting how your any wo/man could do it, in a realistic way.

Also check to see if the lender is going to issue you a 1099 C.. this will be ordinary income to you and tax will be due..

The law (and hopefully your contract) require them to return the property in the same condition as it was received, minus ordinary wear and tear.

For example, a garage, a large lot, a covered patio on foundation, etc. 

Here's my lease language:(k) Yards, patios, balconies, vestibules, hallways, and entrances may not be used to store belongings or to dry clothes.

They share a patio downstairs.

However, the remaining gain not covered by the Section 121 exclusion is taxed at your ordinary income tax rate.Here's how the calculation typically works:Calculate the Depreciation Recapture: The $9,000 of depreciation would be recaptured at a maximum rate of 25%, which is $2,250 (25% of $9,000).Calculate the Remaining Gain: Subtract the excluded amount (Section 121 exclusion) from the total gain: $100,000 (Total Gain) - $9,000 (Depreciation Recapture) - $250,000 (Section 121 Exclusion) = $0Tax the Remaining Gain at Ordinary Income Rate: Since the remaining gain is $0, there would be no additional tax on the gain.So, based on this calculation, it seems like there should not be any additional tax owed after taking into account the Section 121 exclusion and the depreciation recapture at a maximum rate of 25%.It's essential to review your calculations and ensure that you are accurately applying the exclusion and depreciation recapture.