All Forum Posts by: David Pope

Thanks @Ryan Beatty! 

Thank you, @Natalie Kolodij.

Thanks, Michael! You're absolutely right about the partnership. I was hoping it was more straight forward. 

I inherited 5.6% of a commercial property that is worth approximately $27m with $11m remaining on a loan. My stepped-up basis is $21m. For reasons I don't yet understand, if the property is sold I cannot take advantage of a 1031 Exchange and my gains will be taxed as income, which will be 35% federal and 11.3% CA income tax. 

At 5.6% ownership, I would expect to make approximately $900k = ($27m - $11m) * 5.6%.

I expect my taxable gains to be approzimately $336k = ($27m - $21m) * 5.6% 

Does this sound right? Is it possible to avoid taxes on the gains if I buy another property for $564k ($900k - $336k) and make capital investments of $336k? Are there other ways to avoid the high tax on these gains? 

Thanks!

:dave

Thanks, Jace!

I'm not actually sure who operates the property. I'll find out. This will be some management company, right?

I was told the reserves are a requirement of the REIT loan that we have. The disbursements are always exactly $3,333 for my share. All remaining NOI seems to go into this reserve.

That said - I think a simple muitual fund would give me better returns on the same money ($900k) at 8-12% (i.e., $72k - $108k). I understand I wouldn't get the benefit of tax deductions, but what else am I missing that makes this a good deal? 

Hi. I inherited a partnership in a 22 unit commercial building with 8 restaurants, a grocery store, a couple of personal care services, and various other businesses. Rent is around $130k  per month. I was surpriesed to see that trash removal is $20k per month, but ti's a recoverable operating expense so maybe I shouldn't care. Does that amount seem reasonable?

Also, I see about $30k going to the reserves each month, which is currently  at $650k. The property is valued at about $22m. Is this a reasonable reserve? What should I expect?

Finally, I get an annual disbursement of $40k. My ownership is 1/18 (6.5%) and equity is about $900k. This doesn't seem like a great ROI for a $900k investment. Should I be getting more from my investment?

Thank you!

:dave