What is depreciation recapture?
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- Опубликовано: 29 сен 2024
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The IRS - There's no such thing as a free lunch. THE IRS = THEIRS
Good one
I like your style mentally!
So do you pay nothing if you dont claim any depreciation?
You should claim depreciation though. There are ways around paying that tax.
1031 exchange is how. Here's basics you can find online:
To do a 1031 exchange:
You have to use a third party to conduct the exchange. If you personally receive any of the funds, or hold title to the properties during the exchange period, you could lose some or all of your tax advantages.
You have to invest your entire sale proceeds in a replacement property to get full tax deferral benefits.
You and your intermediary have to handle the entire transaction - the sale of your old property, and the purchase of your new property - within 180 days.
You have until the 45th day of that 180-day period to identify your replacement property.
Not correct. Even if you didn't claim it you will still owe depreciation recapture on sale... make sure to claim depreciation...
Lesson: Never Sell
1031 exchange is a healthy option as well. Unless one just wants out of the RE market. 💜
Not always! Ever heard of a 1031 exchange? Look it up.
There's always a catch!
Thanks for looking out Karlton, much appreciated
.
WOW 😮!!! Didn’t know that… Thanks for sharing knowledge!!!
Could you be able to move it out as a 1031?
Yes you can not worry about cap gains or recapture through the process of 1031 exchange
So… borrow against it instead of selling?
That's insane.
More theft in action
This is a very over complicated description. you sell something for money. That counts as income. So it's taxed.
Not all income is taxed.
I would love to do a course on tax , real estate and insurance. Help me please.
Somebody please refer me to these online courses.
Yo that's fuqd up!!!
That y you have to 1031
Welp lesson don't sell
Repeal the Income Tax amendment, abolish taxing income. Replace with sales tax.
Pay tax bill when you spend. No more IRS as your partner with a claim on your income.
Pay the whole thing back or just a percentage?!?!
Says about 25%, I'd write it off still. Even better if you never sell
Pay back all of it.
Excelente explicación de "Depreciation Deduction". Depreciation Recapture.
Could a 1031 exchange void depreciation recapture
Yes
So is it better not to take depreciation?
If it’s not your primary residence they will recapture it anyways, so take the depreciation!
How bout no, when are Americans going to wake up and say no to taxes.
😱 I’m not selling my rental property
So now I’m in this position. I’ve had this house as a rental for 35 years. I’m retired and my wife wants me to sell it so we can move to a warmer climate since I retired last year. Am I just SOL and going to be taxed to death. And also the house got hit by a tornado 3 years ago and the whole area lost about 25 percent in value. What to do !!!!
You could 1031 into a passive investment like a dst or oil and gas mineral rights.
@karlton is it still true if your property is under a Land trust?
This starting to become a favorite
What about selling the asset into a “SoindThrift” type trust sir? As long as the price paid is the purchase price, minus depreciation, plus improvements there is no taxable event.
All the best wishes young sir.
Is there some special tax Exemption for this? I was under the impression that the recapture is basically the difference between deducted price, possibly full price to 9 after 27.5 years, and purchase price with possible adjustment. Add gains for potential sale above purchase price. With the modern housing market who would sell their house for the price minus full depreciation? You may save on taxes but really lose on sale. The next party would have to pay taxes if they sell for the full price as well
What if you were doing so well that you were able to donate the property to a charity? Would they relieve you of having to pay that back to the IRS?
Yes, if you gift the property to a charity, neither you or the charity pay capital gains or depreciation recapture. There are some complex details, however, so it would be good to get help from a tax professional who understands real estate and giving.
Wowwww. Never knew that. Thanks!
So what happens if the property that you’re selling did not depreciate
I believe the irs says a home has a life of 27.5 so you can write off the purchase price of your rental house divided by 27.5 every year. Even if the value of the home is rising they just look at the service life of 27.5 years.
More great content!!🙏🙏
Please mentor me.
Is there any legal way around this?
Yes, 1031 exchange, offset the gain with losses on another property, charitable giving, or die with the property to get a step up in basis.
You can avoid that using 1031 correct?
Correct.
Good to know
Can you elaborate?
@@bennyblaze4571 a 1031 exchange is when you sell an investment property and purchase a new investment property of equal or higher value within (I believe) 180 days. If you've invested, or plan to invest in real estate, a cpa can help you with the specifics.