Depreciation is gone (by MC [UT]) Feb 5, 2023 6:48 PM
Depreciation is gone (by S i d [MO]) Feb 5, 2023 7:41 PM
Depreciation is gone (by Ray-N-Pa [PA]) Feb 6, 2023 8:50 AM
Depreciation is gone (by Wilma [PA]) Feb 6, 2023 1:58 PM
Depreciation is gone (by JJ [NC]) Feb 8, 2023 11:09 PM
Depreciation is gone (by Jim [OH]) Feb 9, 2023 9:41 AM
Depreciation is gone (by plenty [MO]) Feb 9, 2023 9:56 AM
Depreciation is gone (by MC [UT]) Posted on: Feb 5, 2023 6:48 PM Message:
I have 66 units (apartment's) .....I have owned them 26 years. My question is this , what strategies can I use to offset my increasing and upcoming tax liabilities when my depreciation is gone.
I don't want to sell or exchange the property (I am in my early 70's)
Any ideas would be greatly appreciated.
--76.178.xx.xx |
Depreciation is gone (by S i d [MO]) Posted on: Feb 5, 2023 7:41 PM Message:
Once depreciation is gone, the gravy train is (sadly) over. Yes, you can put on a new roof or replace all the furnaces to add depreciable items, but it's silly to spend money you don't have to just to get tiny, incremental benefits over 10-20 years.
The only downside is your rental income won't have any offsets other than standard expenses. And again, it's silly to create $1 of unneeded expenses to save 15 cents in tax write-offs.
So what to do?
You can offset with other losses? Got any loser stocks you're dying to sell? Now is a good time because you can offset your profits with other losses.
But if your stocks are doing well and your property doesn't need any costly capital expenditures, the I'm sorry to congratulate you on being a successful American businessman... Now pay your taxes. --173.21.xxx.xxx |
Depreciation is gone (by Ray-N-Pa [PA]) Posted on: Feb 6, 2023 8:50 AM Message:
1031 into a new project so you can restart the depreciation using the new adjusted basis.
The good news is, your units should be paid off a couple of times over. --24.101.xxx.xxx |
Depreciation is gone (by Wilma [PA]) Posted on: Feb 6, 2023 1:58 PM Message:
Same boat here, with one of our properties, now in year 26. Hoping to 1031 it if RE prices moderate around here over the next year. I'll use a pro outfit to be sure that I do it properly. But hey, that property has gained us about $225,000 over those years; putting two kids through college, bought us some mutual funds - we could easily pay the recapture, etc., if we sold it. --96.245.xx.xx |
Depreciation is gone (by JJ [NC]) Posted on: Feb 8, 2023 11:09 PM Message:
The last time I did a 1031 the new property kept the original properties basis, so it was no help on increasing the depreciation.
--66.26.xxx.xx |
Depreciation is gone (by Jim [OH]) Posted on: Feb 9, 2023 9:41 AM Message:
There are things more painful than paying taxes. Open heart surgery comes to mind but I do not wish that onto anyone. My cold cold heart has not had to be serviced so far.
So, having said that. Take the profits, pay the man and reap the few to none complaints from your tenants. It's a buy and hold thing that every owner realizes later rather than sooner. --184.57.xxx.xx |
Depreciation is gone (by plenty [MO]) Posted on: Feb 9, 2023 9:56 AM Message:
Just thinking. I have never bought a property for depreciation, rather for Cash flow. Depreciation was always a bonus. Keep Enjoying your Cash Flow and all the benefits provided by paying taxes. Yippee Skippee you have held this property for a long time! Any benefits in pulling out cash, and enjoying your money and having a loan paid for by the cash flow? --172.56.xx.xxx |
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