All Forum Posts by: Andrew C.

@Dave Toelkes Thank you!  Currently in the process of speaking with their estate attorney. They will not be selling because of the large capital gains tax they would owe.

How would you suggest to move forward? Straight line depreciation?

@Ashish Acharya

@Paul Caputo Thank you for the detailed response. 

Their overall goal is to hold onto the property and bequeath to the next generation. We are looking to avoid the large capital gains taxes if they sold. Currently appraised at $1.75M in the Boston market and the $500K of gain under section 121 and the $35k purchase price would still leave a taxable gain of roughly $1.2M.

So essentially, doing a cost seg doesn't make sense? Straight line would be better? 

Hi BP community .  


My grandparents have lived in a 2 - unit duplex in Cambridge MA for 53 years. They purchased their home for $35k - the value has sky rocketed in the past 15 years. They are looking to move out of their home and turn it into a rental property.

Will we be able to write off depreciation on this house? Should we look to hire an accountant to do a cost segregation study for us?

Looking for any answers or advice! 
 

@Ken Breeze - thanks for the advice. I have been listening to a  lot of podcast and trying to learn as much as possible. Also am getting real world experience which i will detail later.

Hello, Biggerpocketes community! 

I am excited to be writing my first blog post and learning more about the real estate industry. I am a young professional currently working in the Houston Texas market in O&G. 

I have recently become infatuated with rentals and real estate investing. Over the next few months, I plan to walk through my first real estate venture and the small victories and battle stories from the endeavor thus far. The venture revolves around my grandparents who have lived in Cambridge, MA for the past 53 years, but I do not want to spoil the story - tune into my next blog post.  

From a community perspective, I hope to learn and interact with all the great contributors. I believe the best way to learn is through open networks and BP is a great example.  

Thanks for reading and please leave comments! I look forward to interacting with this great community!

Andrew