I have a rental property valued at appx $175K. I owe appx $60K and rent it out for $1400/month. My cash flow is $900/month. I bought the property in 2000 for $115K
My tenants have recently approached me about purchasing the property they rent from me. If I sell, I will net $115K, but my gains will be $60K.
Lots of questions for the MT:
If I sell, is my net ($115K) figured into my annual earned income for purposes of determining the capital gains rate?
Am I correct that the actual gain ($60K) is all that would be subject to the CG rate?
If I avail myself to a 1031 exchange, how much time do I have to roll over the profits into another investment?
Should I even sell given the fact that I have great cash flow? i.e. What is the market for investment rental property like in BR vs finding other great tenants that can afford $1400/month.
This post was edited on 1/22 at 3:34 pm