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#12327
sushidaddy
Participant

Here are some questions that you answered for me that some of your other clients maybe interested in the answers
Can you briefly go over the different options a real estate investor has to sell a rental property and the different tax ramifications for each option? (Sell with cash out, Installment Sale, Installment Sale with seller finance and a partial 1031 exchange with the cash out, Full 1031 exchange). Especially the depreciation re-capture and what it is taxed at versus the capital gain which is taxed at a lower rate.

Second question: Does anything happen when your refinance and the amount you take out exceeds your cost basis?
Interesting point to mention: You might mention what happens when you refinance, and you do not use those funds to reinvest into the property that your refinanced. In other words, you cannot deduct the interest you paid on the refinance loan against the rental income from that property.