Anonymous

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Rainmaker
1,229,616
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

I would rely on advise from my CPA

Jun 25, 2017 07:56 PM
Ambassador
2,386,832
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 

   See IRS Publication 544, Sales and Others Dispositions of Assets

   Look specifically at Section 1231 Gains and Losses

   Have your CPA explain this to you!

  

Jun 25, 2017 08:40 PM
Rainmaker
1,204,105
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Great question for a CPA or tax adviser. 

Jun 25, 2017 08:19 PM
Rainmaker
4,679,222
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Dear Anonymous.

As much as we would like to share our two cents worth, we are ignoramuses compared to your CPA who has the big picture.  He//She know what is your situation and can give you the best advice.  Wishing you the best outcome. A

Jun 25, 2017 08:18 PM
Ambassador
4,489,473
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Get a good CPA and follow their advice.

Jun 25, 2017 08:04 PM
Ambassador
3,984,538
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

You need to let your CPA guide you. You will probably have recapture and he can tell you how much.

Jun 25, 2017 07:27 PM
Rainmaker
3,316,451
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

As a real estate broker I never provide investment or tax advice on anything. A very good way to lose my license if my advice is bad and somene follows it.

Jun 26, 2017 04:07 AM
Rainmaker
1,280,407
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Best to check with an accountant.  I can't begin to answer this.

Jun 25, 2017 08:25 PM
Ambassador
3,551,669
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

That is definitely a CPA question.  

Jun 25, 2017 07:57 PM
Rainmaker
3,055,915
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Mary Yonkers nailed this one!

Jun 26, 2017 04:51 AM
Ambassador
1,996,868
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Great question for a CPA forum although I think they would want to sit down with you and look at your overall financial situation before coming to a conclusion. 

Jun 26, 2017 04:48 AM
Rainmaker
557,622
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

If you cannot trust your CPA for the correct answer, you need to find another CPA...

Eve

Jun 26, 2017 04:01 AM
Ambassador
1,689,846
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

That is for your CPA to decide but losses are carried forward to my understanding.

Jun 26, 2017 03:58 AM
Rainmaker
821,042
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

That why I use a tax attorney/CPA

Jun 26, 2017 02:31 AM
Rainmaker
958,075
Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

That's why I have a CPA, to answer questions like that 

Jun 25, 2017 09:12 PM
Ambassador
4,126,018
Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

The advice from your CPA, based on your personal situation, will serve you best, I think.

Jun 25, 2017 08:50 PM
Rainmaker
1,054,990
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Try this link:     Depreciation after capital loss

Jun 25, 2017 08:22 PM
Rainmaker
795,851
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

I can't speak for your situation but we have sold several estate properties with a high basis that came no where near the sale price and the "loss" was much, much smaller and  sometimes actually a GAIN due to the recapture of depreciation.  Don't worry the IRS is going to get their share that is legally due!      ^_~

They also add back all the capital improvements you have made on the property that you took a tax deduction for previously if I remember correctly.  

The bright side is there is no depreciation on the land value of the property and therefore no depreciation recapture on that portion of the investment.

Please check back and update us on what your accountant said!

Jun 26, 2017 05:33 AM
Rainmaker
1,863,000
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

My guess is No

Jun 26, 2017 05:31 AM
Rainmaker
4,798,170
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

The depreciation will cut your loss.

Jun 26, 2017 05:30 AM
Rainmaker
1,572,607
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

As Fred Griffin wrote

Jun 26, 2017 05:29 AM
Rainmaker
3,508,269
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

If you can't trust the advice of your CPA in this regard, it may be time to find another professional to assist you.  Good luck.  

Jun 26, 2017 05:14 AM
Rainmaker
4,432,583
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Jun 26, 2017 03:10 AM
Ambassador
4,302,956
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

It is an accountant question - let buyer finalize everything!

Jun 25, 2017 09:15 PM
Rainmaker
3,984,822
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Listen to that person

Jun 25, 2017 08:19 PM
Rainmaker
779,132
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Qs like this give me a headache. There's no way any of us could advise you, and we wouldn't if we could. You have a CPA . . . this is what they do. Why would you risk getting bad info on the internet?

Jun 26, 2017 09:08 AM
Rainmaker
5,218,856
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

and your CPA will have that answer roll off his tongue.... real estate agents would be wise to bite their tongue on this one....

Jun 26, 2017 06:27 AM
Rainmaker
572,912
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I agree with the others: talk to your CPA about this issue.

Jun 26, 2017 05:39 AM
Ambassador
1,614,650
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

best to ask ones tax person

Jun 26, 2017 10:17 AM
Rainmaker
864,528
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

That is a question only you and your accountantcpa can answer - good luck

Jun 26, 2017 09:38 AM
Rainmaker
2,850,645
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Only your CPA can give you the answers you need to make an informed decision. 

Jun 26, 2017 07:18 AM
Rainmaker
1,391,777
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

You won't really know until your CPA runs the numbers.

Jun 26, 2017 06:19 AM
Rainmaker
5,619,159
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Your CPA will provide the advice you need. 

Jun 26, 2017 05:41 AM
Rainmaker
3,442,033
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Rely on the guy who prepares your return. All else is idle fodder.

Jun 26, 2017 05:39 AM