Tax considerations for rental property renovation and repair

I am in the exact situation but I worry about the huge taxes. I bought the property really low around the same time frame as you. I thought about a 1031 exchange to DST but the returns are so low and you lose control. I don’t have any advice for you because I feel like I am in a bind.
Taxes will not be great. If I sell, I'd do one a year to spread it out. I would also restructure some investments to reduce dividends to try to lower income as much as possible.
 
Its not as lucrative anymore. Once a business property, it's always a business property, and you end up paying a factor of the taxes based on (years rented / years owned).
I did have to pay taxes on depreciation recapture which ended up making me pay IRMAA level one in 2 years. Sorry they changed the rules on you.
 
It's not for everyone, but you could live in the rental (used to be for 2 years) and then sell as personal residence with exemption. I don't know the rules now but it w*rked like a charm for us though YMMV.
Sounds like a great plan but I have a a large portfolio of single family homes.
 
Sounds like a great plan but I have a a large portfolio of single family homes.
Back in the day, you could serially live in each one (for 2 years) and then sell. I guess you can't do that anymore - or at least it's not the good deal it used to be. Too bad and YMMV.
 

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