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mathjak107 · 11-07-2006, 03:05 AM

good question, my ex wife is doing that right now...

ill guess and say when you sell its recaptured but im not sure

Nords · 11-07-2006, 09:36 AM

Quote:

Originally Posted by MooreBonds

In the year immediately following your last year of rental, do you mark-to-market your house value, subtract the depreciated value, and pay 25% recapture on the difference? Or do you wait until you sell it to figure out what % of the cap gain is from depreciation?

You would think that the IRS would have taken someone to tax court on this by now. I've seen plenty of articles advocating serially living in your rental properties for two years each, selling them and moving into the next, and taking $500K cap gains tax free. Depending on the basis of your home and its depreciation, the gain from depreciation may be less than $500K and the whole question may be moot...

Martha · 11-07-2006, 11:20 AM

Quote:

Originally Posted by MooreBonds

Okay....my last question on the topic.

I've searched the IRS website, and find plenty of references to turning your residence into rental property. HOWEVER, I can't find any info on what to do if you turn a rental property into a primary residence.

In the year immediately following your last year of rental, do you mark-to-market your house value, subtract the depreciated value, and pay 25% recapture on the difference? Or do you wait until you sell it to figure out what % of the cap gain is from depreciation?

You wait until you sell. At that time, you will have to pay the 25% tax on the recapture. You cannot shelter the tax on the recapture with the $500,000 exemption, but you can shelter any of the non-recapture capital gain.

mathjak107 · 11-07-2006, 04:40 PM

nords i have to agree with you, im not so sure once it stops being a rental and its sold years down the road as a personal residence that the prior depreciation may just get lost in the shuffle as long as the capital gains are under the limit. of course i wouldnt want to be the one to test this out ha ha ha

Gone4Good · 11-08-2006, 10:59 AM

Quote:

Originally Posted by tryan

Also tried evicting at the end of a lease period - to facilitate a sale - and was told by the judge "I will not make a family homeless to facilitate a sale". Posession is 9/10's of the law.

Any precedent for a landlord who wants to evict so HE can live in the apartment? The judge's choice being to make either the lessor or the lessee homeless?

tryan · 11-08-2006, 12:57 PM

Absolutely a bias in favor of owner occupants. They can even avoid the MA lead laws by not renting to people with kids!

mathjak107 · 11-08-2006, 05:06 PM

Quote:

Originally Posted by 3 Yrs to Go

Any precedent for a landlord who wants to evict so HE can live in the apartment? The judge's choice being to make either the lessor or the lessee homeless?

we took an apartment back for my son.. it was very tricky as far as the laws. the notice had to be by a certain date to make it effective by a certain date. a process server had to be used and an attorney hired.

the wording had to be very careful and had to state we owned no other property for my son to live in.

when all was said and done if the tenant didnt get out you still had to go to court to get an eviction notice..

if the apartment is rent controlled or rent stabilized than you cant even take it back for yourself or family member

MooreBonds · 11-08-2006, 07:44 PM

Quote:

Originally Posted by mathjak107

we took an apartment back for my son.. it was very tricky as far as the laws. the notice had to be by a certain date to make it effective by a certain date. a process server had to be used and an attorney hired.

the wording had to be very careful and had to state we owned no other property for my son to live in.

when all was said and done if the tenant didnt get out you still had to go to court to get an eviction notice..

if the apartment is rent controlled or rent stabilized than you cant even take it back for yourself or family member

So what happens when you want to, say, remodel the apartment? Do you have to find another place for the tenant to live, then guarantee them an apartment to return to once you finish remodeling?

mathjak107 · 11-09-2006, 03:53 AM

to tell you the truth i dont know anyone who remodeled a rent controlled apartment to the point a tenant couldnt live there but if you did you would have to pay for lodgeing for them.

mathjak107 · 11-09-2006, 03:57 AM

Quote:

Originally Posted by mathjak107

we took an apartment back for my son.. it was very tricky as far as the laws. the notice had to be by a certain date to make it effective by a certain date. a process server had to be used and an attorney hired.

the wording had to be very careful and had to state we owned no other property for my son to live in.

when all was said and done if the tenant didnt get out you still had to go to court to get an eviction notice..

if the apartment is rent controlled or rent stabilized than you cant even take it back for yourself or family member

correction i re-read the rent control laws and yes you can go to court and try to get the apartment back for yourself. its easier to get a rent stabilized then rent controlled apartment back though.

either case unless the tenent gives up the apartment willingly it will take a court order.

all dwellings over 6 family in our city are rent stabilized