I think you're correct about the 1031 exchange, but that just means you have to "stay in the game" of being a rental property owner / landlord.Thank you very much for the input regarding landlording!I don't know how you feel about being a landlord, but I'd suggest you think about that beforehand.
What was unexpected is that keeping the building and renting it out didn't make financial sense to the New Retirement, as opposed to selling it and investing the proceeds into the taxable account with 3.5% return. Where we live the appreciation of commercial real estate is probably close to 0%.
Many in the forum (myself included) have lost their desire to be landlords as they age. Index funds are so much easier to own.
Regards,
I am a landlord now, and it's definitely not something I enjoy or how we make a living. We have a tenant who essentially offsets the taxes we pay on the property. Like some of you landlords, I have stories to tell about the tenants we've had. There's some bizarre stuff. We decided to sell the building along with the business and investing the proceeds.
Correct me if I'm wrong, but there's a IRS Section 1031, an exchange of business property for the same kind of property. In our case, the sale of the $500k building would probably mean a $100k tax bill, unless we invest into another income-producing property. That's something I'd have to look into further.
Regards,
Statistics: Posted by retired@50 — Fri Jul 05, 2024 9:13 am — Replies 18 — Views 2133
