We are in our late 50s and have rented a house out for 21 years after living in it from 2001-2004. It currently rents for $3000 and is worth about $550k. The mortgage is down to $50k and we have been depreciating based on 2004 house value.
Is it time to 1031 for something with similar numbers, should we be looking for better numbers, or should we just sell, take tax hit ($200k LTCG and $200k depreciation recapture) and invest in stock market? (That’s a lot of tax for us)
Keep renting, 1031, or sell and invest in the stock market
byu/52mretirednavy inrealestateinvesting
Posted by 52mretirednavy
1 Comment
if you wait until you retire & have $0 earned/portfolio income, you can reduce the tax hit substantially. installment sales are also attractive means of spreading the tax hit out over several years, & can be useful, esp after retirement. Talk to a CPA and find out exactly how much this is going to cost you before committing to sell or not sell.