Also, you will pay ordinary income tax on whatever gets distributed to you from the inherited IRA, so the $100,000 you are talking about "pulling out" from the inherited IRA (assuming you mean as a distribution) will be taxable ordinary income this year.However, you do have the option to invest the inherited IRA in real estate with a self-directed (inherited) IRA.

Flip income ("Real Estate Dealer") is classified as ordinary income and as a result not eligible for the Section 121 Exclusion.

This only applies to the investment portion of the property.Holding period: The length of time you've owned the property affects whether gains are taxed as short-term (ordinary income rates) or long-term capital gains (generally lower rates).

For Realtors, most MLS's also offer an assumable search (for those that are identified correctly) when noted investors can find this information on additional details at the bottom of real estate sites like Zillow and Realtor.com under 'Terms' usually it will say conventional, cash, assumable...Title companies can be helpful with verifying the original loan balance and original note date which is a good indicator of the sellers note rate and how much principal they've paid down based on an ordinary amortization schedule. 

Hi all,Spent all morning trying to research this and get conflicting answers, so let's try the BP hivemind.1) Is depreciation recapture ALWAYS taxed at 25%, or is it taxed at your ordinary income rate UP TO 25%?

if you buy, develop properties and then sell them.You are considered a 'developer' and the land / houses are inventory. therefore, the income would be ordinary and not capital gains.

Hope Village has patio homes for Seniors they are 500k to purchase a 40% interest and then the HOA is 1500.00 a month..

I am curious if classifying my spouse as a real estate professional can offset ordinary income when filing jointly.  

A copy of these instructions will be included in the book I hope to publish this summer.I allow a few small nail holes without charge because that is ordinary for any occupant.

No answer on the mysterious phone number I had; no answer at the door; junk mail building up on the patio; property was clearly vacant.