All Forum Posts by: Horacio Gutierrez

Any book you recommend would explain this?

@Bill Brandt

So capital gains will only be from the last remtal I sold but depreciation is the total amount of all previous properties and current property when doing a 1031 exchange?

If I sold both properties at then end would I have payback depreciation for both properties or just the last property I had?

Hello,

1. If I do a 1031 exchange on the rental property I buy will I be able depreciate for another 27.9 years?

2. If I sell my property and I dis 1031 exchange properties before will I have to pay depreciation on all 3 rental properties I owned or only the last home I sold?

@Ashish Acharya

Say my tax bracket is 10% capital gains and ordinary tax bracket 20%. I sell my rental property and earn $250000 and my current salary $150000 which applies 3.8% because it's over $250000. Also next tax bracket is 25% for ordinary tax. Does that mean I will pay 10% on the $250000 for capital gains and 3.8% on $150000 and far as my ordinary which is $150000 will I still pay the same amount taxes for amount tax bracket which is 20% on the $150000 or will I be on the 25% tax bracket because I made more than my usual tax bracket with the capital gains tax or will it be 3.8% I pay and stay at 20% tax bracket?

@Ashish Acharya

Say my tax bracket is 10% capital gains and ordinary tax bracket 20%. I sell my rental property and earn $250000 and my current salary $150000 which applies 3.8% because it's over $250000. Also next tax bracket is 25% for ordinary tax. Does that mean I will pay 10% on the $250000 for capital gains and 3.8% on $150000 and far as my ordinary which is $150000 will I still pay the same amount taxes for amount tax bracket which is 20% on the $150000 or will I be on the 25% tax bracket because I made more than my usual tax bracket with the capital gains tax or will it be 3.8% I pay and stay at 20% tax bracket?

You mean its lowers your ordinary tax amount not your capital tax. You only defer some capital gains tax every year but your ordinary tax bracket can be higher for your salary income if you earn all of the capital gains that same year?

Hello,

Does anyone have seller finance contract template that might include no due on sale clause, no prepaid penalty, right of first refusal, terms, etc.

Thanks,

recognizes an installment sale as a way to defer a capital gain on a property sale. This can save on taxes by avoiding a bump up into a higher tax bracket if the seller had a huge gain." How do you pay less taxes by doing an installment sale, I thought your capital gains had it's own tax bracket amd ordinary had it's own tax bracket. How does capital gains lower you ordinary tax bracket, also in seller finance is the interest tax a ordinary tax or still capital gains tax?

Thanks,

Can you explain what this mean "The IRS recognizes an installment sale as a way to defer a capital gain on a property sale. This can save on taxes by avoiding a bump up into a higher tax bracket if the seller had a huge gain." How do you pay less taxes by doing an installment sale, I thought your capital gains had it's own tax bracket amd ordinary had it's own tax bracket. How does capital gains lower you ordinary tax bracket, also in seller finance is the interest tax a ordinary tax or still capital gains tax?

Thanks,