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billvon

House, part 2

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Finally. After months of mold remediation, lawyers, broken foundation tendons, arguing with some very odd people, and signing something like 45 agreements, addendums, amendments and acknowledgments - we are now the owners of a new (well, used) house. We're planning to rent out the one we're in now once we do some work on it.

Now the real work starts. Painting first. The pain of carrying two mortgages for a few months - and of paying to renovate a house that we won't be living in - is somewhat counteracted by the fact that we don't have to make "the big move" until the basic work is done (painting, floor repairs etc)

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If you want to make your present home a permanent rental, remember. Depreciate. In the end, 27 and a half years or so, you will reach zero basis in taxes. (you depreciate the structure, not the land, which may maintain it's value) Might as well start a depreciation schedule with the next tax season that you have tenants. Get back as much reduction in taxes as you can while you can. IRS Pub 527 is your friend.:)
Welcome to the headache!!
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As I understand it, once you depreciate to $0, when you sell the property the entire amount is subject to long term capital gains, right, regardless of what you paid for it? However, it's cheaper to pay that than to not depreciate and pay income tax on the rent received at your high marginal tax rate. At least, that's how I'm playing it.

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If you're discrete you can probably find some pothead at the DZ to accidentally torch the other property. I never said this. I am not here.
"No cookies for you"- GFD
"I don't think I like the sound of that" ~ MB65
Don't be a "Racer Hater"

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If you're discrete you can probably find some pothead at the DZ to accidentally torch the other property. I never said this. I am not here.



Next trip to Arizona you can pick up some illegals that will work for you.
I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama
BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun

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Got a spare room?
I could be your personal assistant and Amy's cabana boy.
2 functions, 1 paycheck.
:D:D

House looks good.

I would advise against a skydiver housewarming party, though. It'll cost more in repairs afterward.
My reality and yours are quite different.
I think we're all Bozos on this bus.
Falcon5232, SCS8170, SCSA353, POPS9398, DS239

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>By the way, is it close to the old one?

About two miles. Will make the move a lot easier.



Yep, a pick up truck or open trailer will do. Fuck U-haul. :P
"Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban

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>Fuck U-haul.

Well, there's a U-haul place between the two houses. I'm thinking a $19 pickup truck for a few hours should do it. (Unless I can talk Dave into letting me use his.)



That's not bad. I think it would be all right for short trips, I just would not recommend U-Haul for long ones. If I lived closer, I'd lend mine to you, hell, even help you move.
"Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban

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Finally. After months of mold remediation, lawyers, broken foundation tendons, arguing with some very odd people, and signing something like 45 agreements, addendums, amendments and acknowledgments - we are now the owners of a new (well, used) house. We're planning to rent out the one we're in now once we do some work on it.

Now the real work starts. Painting first. The pain of carrying two mortgages for a few months - and of paying to renovate a house that we won't be living in - is somewhat counteracted by the fact that we don't have to make "the big move" until the basic work is done (painting, floor repairs etc)



Congratulations, Bill. It's a beautiful castle:)

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