RetireBy90
Thinks s/he gets paid by the post
Another rental property question
So assume I have a house in Reno purchased for $242K and set building at $183K for depreciation of $6,654 each year.
I am thinking of a 1031 or Starker exchange. So assume I sell Reno for $600K
If I buy a replacement for $601K how do I depreciate on new property ? I have a cost basis of $242K plus improvements
and buy/sell/buy costs. Do I stick with the original $6,654 each year or figure on value of new building ?
If I were to buy 2 properties to replace the Reno property one for $400K and one for $201K, just to keep numbers simple,
do I just have a cost basis of 2/3 or $122K on first and $61K on second ?
Does any depreciation already done on Reno just follow 2/3 on first and 1/3 on second one, for recapture tax for example.
Thanks, this stuff gets my head hurting sometimes.
So assume I have a house in Reno purchased for $242K and set building at $183K for depreciation of $6,654 each year.
I am thinking of a 1031 or Starker exchange. So assume I sell Reno for $600K
If I buy a replacement for $601K how do I depreciate on new property ? I have a cost basis of $242K plus improvements
and buy/sell/buy costs. Do I stick with the original $6,654 each year or figure on value of new building ?
If I were to buy 2 properties to replace the Reno property one for $400K and one for $201K, just to keep numbers simple,
do I just have a cost basis of 2/3 or $122K on first and $61K on second ?
Does any depreciation already done on Reno just follow 2/3 on first and 1/3 on second one, for recapture tax for example.
Thanks, this stuff gets my head hurting sometimes.
