All Forum Posts by: Jim Hwang

Thanks a bunch, Jack and Sepehr!

Thank you for the responses and education, gentlemen!

Dave, that sounds vaguely familiar, thank you. Do you recommend a particular CPA who would understand this? 

Hi all,

I've struggled for weeks to get a definitive answer to this, and am hoping the magic of the BP community comes through here: how do I calculate a rental property's total depreciation amount from which 25% will be taxed as recapture?  Below is the link to a spreadsheet template I found (credit to Coach Carson's YouTube channel), with my actual numbers entered.  Line 12 is the mystery- one CPA estimated 56K, but I got 140K by taking the purchase price X 70% (land was the other 30%), then dividing by 27.5 and lastly multiplying by the 17 years I owned the property.  I'd appreciate any feedback!  https://docs.google.com/spread...

Thank you all for your responses; I'm amazed at grateful for the BP community- power in numbers!  The exchange died, which all in all may be OK so long as I capitalize on the liquidity.

Hello BP community,

I am about 11 hours away from letting my 1031 exchange fail after much back and forth.  To defer all taxes, I would need to reinvest at least 250K.  Currently, my QI is holding about 110 in capital, meaning I would need to replace 140K in debt.  Taking on new debt at current interest rates is a large reason I was ready to let it fail, until literally an hour ago when I thought, "Can I use seller financing to replace that debt, presumably at a much lower interest rate?"

A follow-up to that is whether or not I could list my mother's SFH as a replacement property and then have her be my "bank". The sticky part here is twofold: she was the co-owner of the relinquished property, and her SFH is what I have listed on prior tax returns as my primary residence since at the time I was living abroad. Since August 2022, I have lived in Idaho and so her SFH would technically be an investment, or so I would hope.

Hi Joe, thanks for your reply.  I just noticed your post.  I've already considered DSTs and opted to go another direction.

If I can just add to John's question, I'm curious to know how much the 45-day identification period factored into your decision and whether the time constraints helped or hurt you.  I won't pretend to be "asking for a friend"; I'm currently 11 days away from my deadline with no clear cut replacement property, and am leaning toward letting the exchange fail and pay the hefty 15+ years of depreciation recapture.

Congratulations, Russell!  I appreciate your willingness to promptly respond to newbies like me.

Hi all,

Do the deferred taxes using a 1031 a) reset with each sale, b) snowball cumulatively, c) stay fixed from the original sale, or d) something else?  I just sold a rental in December 2022 and put the proceeds into a 1031 exchange; however, 2022 for me had an abnormally low taxable income, so it would be relatively advantageous to pay my capital gains + depreciation this year as opposed to future years when I would presumably have more income?  I've been posting a lot on this 1031 topic here lately as a first-time user of it with 2 weeks to decide whether to replace or pay tax; thank you for your input!