Nike Sportswear Pants

Not true. depreciation will reduce your basis only if you take it. If you fail to take the depreciation, then you cannot take it in another year. You would have to amend your return to take the depreciation, but it will not reduce your basis if you do not take depreciation.

Looking at IRS Publication 551, on page 6, under depreciation, it says:

You won have this issue as recapture deals with accelerated depreciation over straight line depreciation. But, I was given an explanation of this in a very straightforward way that did not involve any difference between straight line and accelerated depreciation. It was just the total depreciation taken in prior years. I think that what on Form 4797, box 33b. And that then shows up as " other income" on the main forms. I did end up discussing this topic with my accountant, who confirmed the depreciation recapture tax on the full amount of the depreciation.

Nike Sportswear Pants

Joe, I see your qualifications. But, Nike Polo Shirt Men

Nike Sportswear Pants

Originally posted by "RECPATAXMAN":Originally posted by "Wheatie":Doesn matter if you actually took the depreciation or not, it still reduces the basis.

There are two different sets of tax implications involved.

what you saying isn consistent with my reading of the IRS docs and from explainations from my accountant and a non accountant, but knowledgable person. I like your version better, so help me understand.

Nike Sportswear Pants

Nike Sportswear Pants

You won have this issue as recapture deals with accelerated depreciation over straight line depreciation. All real property depreciation has been straight line since 1986 and thus no recapture tax for properties purchased after 1986.

Nike Sportswear Pants

I didn mean to imply that depreciation could be carried forward. I did mean that disallowed passive losses can be carried forward. Those do include depreciation.

Get the Free eBook from BiggerPockets

Get The Ultimate Beginner's Guide to Real Estate Investing for FREE read by more than 100,000 people AND get exclusive real estate investing tips, tricks, and techniques delivered straight to your inbox twice weekly!

Then, there are potentially tax implications on the short sale. The IRS treats forgiven debt as income, and you owe taxes on that. Its also possible for the lender to get a judgement against you for the shortage on the payoff(s). You can try to address Nike Sportswear Pants this judgement in the short sales paperwork by including a statement to the effect that the amount(s) paid is the full and final settlement of the debt. That can still leave you owing tax on the shortfage. There are ways to get out of this tax. Bankruptcy is one. Insolvency is another. There some way to show the IRS you insolvent, but I not looked into the details. Thats assuming those situations actually appply.

Like I say, I sure like your version better, especially not having the depreciation recapture tax.

That sure makes it sound like you have to reduce the adjusted basis by the amount of the depreciation. I don really consider this a very big deal, since I don see why you would not take it each year. So, it seems sort of like a moot point.

Of that gain, you owe depreciation recapture tax, currently 25%, on the gain up to the amount of depreciation you were allowed to take. You owe capital gains tax on the remaining amount. Short term or long term rates depend on how long you held the property. Note that the actual sales proceeds don have any bearing on these taxes. They just depend on the sales price and purchase price. If you did cash out refi its possible you owe taxes on money that you already taken out with those refi The short sale is irrelevant for this calculation.

file amended returns if you didn take all the depreciation.

´╗┐SHORT SALE TAX IMPLICATIONS

Originally posted by "Wheatie":Of that gain, you owe depreciation recapture tax, currently 25%, on the gain up to the amount of depreciation you Nike White T Shirt

were allowed to take.

Nike Sportswear Pants

Originally posted by "RECPATAXMAN":Originally posted by "Wheatie":Of that gain, you owe depreciation recapture tax, currently 25%, on the gain up to the amount of depreciation you were allowed to take.

Nike Sportswear Pants

Now, on form 4797, Sales of Business Property, it arranges things differently on lines 2 and 10, but to the same effect. It has you list sales price, depreciation (" allowed or allowable since acquisition" ) and the basis (not adjusted basis.) Then you add sales price and depreciation, and subtract the basis. Thats the same as saying " sales price (basis depreciation)" . On line 20 24, it does the adjusted basis calculation, then subtracts that from the sales price.

Nike Sportswear Pants

Decrease the basis of property by the depreciation you deducted, or could have deducted, on your tax returns under the method of deprecia tion you chose. If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. If you did not take depreciation deduction, reduce the basis by full amount of the depreciation you could have taken.

Nike Sportswear Pants

Nike Sportswear Pants

Not true. depreciation will reduce your basis only if you take it. If you fail to take the depreciation, then you cannot take it in another year. You would have to amend your return to take the depreciation, but it will not reduce your basis if you do not take depreciation.

First, there is the normal gain on the sale. If the net price your getting (selling price less costs of the sale) is larger than your basis, then you owe taxes on that gain. Basis is the purchase price less the purchase costs less depreciation you were allowed to take. Doesn matter if you actually took the depreciation or not, it still reduces the basis. So, Nike Leggings Girls

Originally posted by "makessense":Am I supposed to be able to understand those tax implications? :shock: Perhaps an example with numbers would clear this up for many.

3. The tax impact on a short sale did change when Bush signed into a law a bill that will result in no taxes being due on the debt forgiven. The law only applies to owner occupants so it does not help the person who has a rental. The owner occupant does not have to worry about depreciation in the first place as they are not holding the place as a rental. Investors can take depreciation.

1. Provide some numbers so people can work with something that makes sense to you.

Doesn matter if you actually took the depreciation or not, it still reduces the basis.

2. At some level just ignore the fine points and outsource the details to an accountant.

Not sure how a land trust would work, but I not very familiar with them.

Nike Sportswear Pants

Nike Sports Bra Black

Converse Shoes High Cut For Women
Converse High Tops Uk Leather
Nike Down Vest

Converse One Star Vintage
Nike Tech Fleece Pants

Nike Aeroloft Hybrid

Nike Sportswear Down Fill Parka

Converse Glitter Trainers
Nike Sportswear Rally Women's Short Sleeve Crew

Nike Sportswear Cheap

Nike Socks Basketball

Nike Sportswear Bonded Men's Woven Pants

Converse Mens
Nike Shorts Colors

Home / Nike Sportswear Pants