What do Do with Buy and Hold at 27 years?

Question

Not quite there yet but what strategies are there as one runs out of Depreciation on a Buy and Hold SFR? I have been through one new roof and replaced the windows and HVAC. I have recently gone thru a 1031 on another property in CA and see that all that depreciation follows to the replacement property.

Buddy Holmes · Answer

@Dave Foster Thanks for the reply. That is pretty much what I was thinking. I just wondered if there was some magic something I was missing. It has been paid off for a while now and is a good cash flow so I guess I will keep it for now.

Dave Foster · Answer

@Buddy Holmes, The depreciation was a gift from the govt. for 27 years. The bill for that won't go away until you pass but you could use the 1031 to go from the property you have depreciated out and purchase something worth twice as much.

When you do this you not only avoid having to recapture the old depreciation. You now have purchased an additional 27 additional years of similar depreciation.

What do Do with Buy and Hold at 27 years?

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