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Talking to several people and they all had some type of real estate investment where they buy a low priced home, put some upgrades and then rent the house.
Is this a long term strategy? I honestly don't understand whats so popular about it.
I didn't know it was popular. Real estate is a pain in the *ss to me. I would never want to be a landlord or fix up a house. That doesn't mean it's not a good idea for some people, but you have to have the right work ethic, skills, and temperament for it. I don't.
I didn't know it was popular. Real estate is a pain in the *ss to me. I would never want to be a landlord or fix up a house. That doesn't mean it's not a good idea for some people, but you have to have the right work ethic, skills, and temperament for it. I don't.
It was a PITA for me too. I've sold 3 of my 4 rental SFRs and the final one will be vacant shortly and going up for sale early next year. I'll be so glad when the last ripple of the finances and bookkeeping are behind me, my last tax return filed, and out of the business. I want passive income and being a landlord at least at my level wasn't. I hate complaining to tenants because they haven't paid their late fees or their rent is past due. And the lies and promises they make! I sure wish I could deposit their promises but my bank insists on checks.
Trying to make sense of it although it seems nonsensical to me, how is an appreciating asset claimed as losing money (depreciating) in tax terms? That makes no sense.
except unless you want to die with that real estate depreciation gets paid back when you sell ... it is a whole lotta nothing unless you die.. because you are selling an asset too the pay back while capped at 25% can be higher then you wrote it off at since the asset sale is now counted in the income .
except unless you want to die with that real estate depreciation gets paid back when you sell ... it is a whole lotta nothing unless you die.. because you are selling an asset too the pay back while capped at 25% can be higher then you wrote it off at since the asset sale is now counted in the income .
I discussed this with my accountant. Wouldn't want to argue your points, but there may be another way.
Since we have had our properties paid for for many years, we will carry the note when they sell.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by mathjak107
except unless you want to die with that real estate depreciation gets paid back when you sell ... it is a whole lotta nothing unless you die.. because you are selling an asset too the pay back while capped at 25% can be higher then you wrote it off at since the asset sale is now counted in the income .
Depending on the real estate, if it’s something you don’t mind living in before you sell you could do that then use the homeowners exemption.
except unless you want to die with that real estate depreciation gets paid back when you sell ... it is a whole lotta nothing unless you die.. because you are selling an asset too the pay back while capped at 25% can be higher then you wrote it off at since the asset sale is now counted in the income .
No, if held for more than one year, the gain is a long term capital gain and taxed at long term capital gain rates, and is not treated as ordinary income.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,075 posts, read 7,519,082 times
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Quote:
Originally Posted by mathjak107
except unless you want to die with that real estate depreciation gets paid back when you sell ... it is a whole lotta nothing unless you die.. because you are selling an asset too the pay back while capped at 25% can be higher then you wrote it off at since the asset sale is now counted in the income .
We are planning to die and leave the 'problem' to our heirs.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by leastprime
We are planning to die and leave the 'problem' to our heirs.
At which point those taxes disappear.
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