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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: To become a landlord or not ? Date: 4/3/2011 9:47 PM
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Depreciation basis is improvements plus cost of structures: 128K + 80K = 216K.


I think that's $208k.


You are right.

If you sell for a value greated than the depreciated value, there is recaptured depreciation which is taxed as regular income.


Are you sure that it's taxed as regular income ? And not as a long-term capital gain ? This would make the tax situation upon sale after september 2013 a lot worse - paying 28% federal at time of sale, instead of 20%.


Not the full amount, but the amount depreciated is subject to recaptured depreciation.
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