He wants to avoid capital gains, if he can.

57% RE.I agree with the statement that the market is similar to Vegas, more so today than in the past with all the govt manipulation.I still play in that pool though, been through all the ups and downs, but overall still pretty nice gains there.

My understanding is that any depreciation one cannot take against his ordinary income (for reasons such as making >$150k) can be later used to offset any capital gains down the road.

Glenn I forgot to mention that being built in 1955 you most likely will have issues with lead abatement with the new EPA certified rules which will increase your rehab cost.I don't know why everyone gets worked up on a house being close to a commercial property or highway.The value of the land the house sits on is often worth way more for development than the value of the house that sits on it.You can still have someone pay you to haul off the house or gut it for parts and make some money that way.I love land next to commercial and know exactly who to market it to an dhow to sell it.Now if you are in a big subdivision with track homes on small lots that backs up to a junkie commercial business that is another story.The reality is you are probably not going to assemble all the homes for a commercial project because the front piece is the most valuable and everyone will want to much for their house making the project total cost unfeasable.

Since the same article placed on multiple sites eventually makes all articles less valuable to search engines, many people now "spin" articles.

This gives the investor a "CD with a lottery ticket attached" and is very appealing for those that seek steady income and the opportunity for capital gain.

I think you and others should find it to be valuable.

You just can't take out any gains without penalties.

Access to quick money when you need it is WAY more valuable IMO.

Basis step up on death plus basis addition from gain recognition on the first sale gives you a lot of leeway.