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True, but you'd have to pay tax either way (e.g. don't have a rental and pay capital gains, though this is minimized if you're a first time homeowner), is what
by tabeth 9y ago
True, but you'd have to pay tax either way (e.g. don't have a rental and pay capital gains, though this is minimized if you're a first time homeowner), is what I'm saying. Though, the cool thing is that if your house is a rental (as opposed to residential) you can actually offset depreciation recapture by passive loss throughout the time the property was a rental. Often this completely negates the tax.
Man... too many benefits are given to those who own property.
- vasilipupkin 9y agodoesn't passive loss lower your tax basis? so, no, I don't think it negates the tax.
- tabeth 9y agoYou're right, however in the original scenario proposed you'd sell your property and buy another one, enacting like kind exchange. So then you don't have to pay any taxes.