Should I sell my rental property now or hold due to depreciation recapture?
#1
I’m trying to decide whether to sell a rental property now or hold it for a few more years. The market in my area feels high, but I’m worried about the tax hit from depreciation recapture eating up a big chunk of the profit if I sell.
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#2
I sold a rental a few years back and the depreciation recapture shaved a big chunk off my profit, it was a harsh surprise.
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#3
The market around here feels high and I keep thinking in terms of comps and cash on cash, not just the sticker price.
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#4
I did a rough after tax calc and realized the net when selling would be messier than I hoped, so I pulled back and kept renting for now.
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#5
Is the real problem the sale price or should I look at cash flow and maintenance first?
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