[quote=plm]State cap gain can’t be right since the highest possible is 13.3 and if you were paying the highest rate, you would have to pay the 20 percent fed rate plus the 3.8 medicare rate as well.
I don’t want to be a landlord either but decided not to sell because I would be paying 20 + 3.8 + state tax.
More likely I’ll figure out how to do a 1031 exchange to get a vacation home after renting it out first to meet 1031 rules.[/quote]
I am selling reluctantly, I’ve never really cash flowed and in the longer term I doubt I’d be able to hold onto the property so I felt I was either going to pay now or later (taxes).
I want to do a 1031, but I can’t really afford to buy another 350k property (since a 1031 requires the replacement property to be at the same or greater value?)
I thought about selling both my rental and primary property and buying a multi-family property and using a 1031 to make that purchase.
But was told partial 1031’s usually don’t pencil out.
