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Re: Selling Residential Rentals, Going Liquid
Old 09-02-2005, 08:29 AM   #61
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Re: Selling Residential Rentals, Going Liquid

We have had the same problem with AMT when selling rental properties.

Also, don't forget the 25% federal tax on the amount you previously depreciated.
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Re: Selling Residential Rentals, Going Liquid
Old 09-02-2005, 09:09 AM   #62
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Re: Selling Residential Rentals, Going Liquid

Quote:
Originally Posted by tryan
Add a 5% realtors commision and 1-2% tax stamps and it's easy to see why many just keep them for the rents.

Also it you get caught in the federal ALT MIN tax, 15% can shoot up. I paid closer to 18% the year I got hit.
tryan - told it will be about 6% selling expense (5% commis)...it is easier to just let it ride, but we had a very hard time getting insurance this last renewal, plus I admit I think an earthquake disaster is inevitable-will deflate the market values-and want to get some of the assets there liquid while the market is high...forgot about that AMT... haven't had it yet..this year's income is similar to last year..will this push me into AMT

Quote:
Originally Posted by Martha
We have had the same problem with AMT when selling rental properties.

Also, don't forget the 25% federal tax on the amount you previously depreciated.
...and the depreciation...and the extra time on the CPA's bill....ahhh!
...still I have nothing to complain about...I have little problems compared to the people down on the gulf and unclemick..

Thanks tryan and Martha
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Re: Selling Residential Rentals, Going Liquid
Old 09-02-2005, 10:11 AM   #63
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Re: Selling Residential Rentals, Going Liquid

From some quick calculations I believe AMT will hit me big time...

I had heard the feds were going to try to make changes to it this year?
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Re: Selling Residential Rentals, Going Liquid
Old 09-02-2005, 11:54 AM   #64
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Re: Selling Residential Rentals, Going Liquid

Quote:
I had heard the feds were going to try to make changes to it this year?
The problem - as I understand it - is that the law does not adjust the trigger for inflation.* Soooo the tax law is fullfilling its need ... many, many more tax payers find themselves being called "wealthy" by uncle; and, therefore, paying more taxes by triggering ALT MIN.

Was not aware of any move to correct this.

DISCLAIMER - I am not a CPA; but I talk with one once/twice a year.
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Re: Selling Residential Rentals, Going Liquid
Old 09-02-2005, 12:30 PM   #65
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Re: Selling Residential Rentals, Going Liquid

Why would they adjust it?

It's a way for the government to legally rip us off.

This cap was set in 1969 when a big salary was 15K.
They tell us that their lowering our taxes and then everyone falls into the AMT and we get hammered again.

It's all political bullcrap!
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