All Forum Posts by: Anthony Blasko

All good points. Didn't think of it that way. Thanks, all.

@Dan Barli

So what do you do with it then if you cant collect it?

So at the risk of sounding shady, I want to say up front that I have no interest in trying to pull one over on a tenant.

My questions is simply this. Is it legal to put a tenant's (or multiple tenants') security deposit into a savings account and then collect the interest that the deposit makes for you?

At first glance, I wouldn't think so, but maybe there is something when it comes to reporting that would have some pitfalls.

Thank you everyone for the responses. Much appreciated.

@Kyle Kadish

Ok makes sense. Can you explain what you mean by being able to depreciate "only any depreciable amount left from what was sold and the increased value from the replacement(s)"?

@Kyle Kadish

So I guess I'm still unclear on this.

If I have a property that I buy for $100,000 and depreciate it $50,000 over however many years, but then sell it for $200,000, do I pay taxes on $100,000 or $150,000? And what is the gain?

@Natalie Kolodij

I guess that would make sense. So does depreciation simply reduce the property's basis, reflecting a higher gain when it is sold?

@Michael Plaks

Thanks for the response. So how does the IRS ensure depreciation recapture is collected upon a sale?

I've heard a lot about the benefits of depreciation and forcing as much into it when you first buy the property, but how does depreciation recapture work and is it something that most investors ignore because they plan on doing a 1031 exchange?

Are flippers worried about it?

Thank you everyone. Super excited to get engaged. This is definitely a step towards making this a reality and its nervous and exciting at the same time. Gotta take action at some point.