It turns out the potential buyer for The Pine House wasn’t qualified for a mortgage, so as of today, the house is officially on the market…
This was an incredibly long and tedious project relatively to some of our others — it took over 9 weeks to complete, we were over budget by about 10%, and in retrospect, we probably paid too much for the house. That said, the results are amazing, and this is probably one of my favorite houses to date. If you look at the before and after pictures of this house, you’ll understand what I mean.
Here are the final pictures, after the rehab was completed and the house was staged:
And as a reminder, here are the BEFORE pictures of this house:
I think you’ll probably agree it was a tremendous transformation! Now, it’s just a matter of marketing it and getting it sold. I’ll keep you updated…
Off topic: So here’s an interesting question. I’m looking over my taxes to see what my “true cost” on my rental property is less the amount depreciated, in order to calculate my tax basis once I sell the property. The cost of my home plus all the major home improvements is $911,000 (no I’m not including repair expenses which I’ve write off annually). The accumulated depreciation is $161,000. I would therefore assume my tax basis for the property is $750,000, which really sucks for me. However, the losses I’ve been able to deduct over the years have been severely limited due to Form 8582, the Passive Activity Loss Limitations worksheet. It seems I have $140,000 in prior years unallowed losses. Generally speaking, I’ve only been able to write off about $2,500 a year in Rental real estate losses. It doesn’t seem “fair” that the gov’t limits the amount I can deduct annually for losses, but then uses the full depreciation figure to lower my tax basis for the property.
I’m wondering if the loss limitations I’ve been subjected to are factored in when determining the tax basis for the property.
Any clue?
ez
can you please edit my question to reflect at least 9th grade english? thx
I think you should use the transformation pics of this house in your future advertising (or TV makeover show)!
Nice job, team!
Ez –
I responded to your question via email, but the quick answer is that the $140K is a “carry forward” loss that you can use in future years. If you sell that house this year, and your taxable gain is greater than $140K, you can use that entire $140K carry forward loss to offset that gain.
I hate hearing about the potential buyer not working out, but at least there is high interest in the property. With the before/after photos I’m not surprised! What an amazing transformation!!!
Wow, can’t believe it took 9 nines to complete! I woulda thought 7 or 8 nines tops!
Dude, you’re 2 weeks behind on the blog!!!
What is “9 Nines” i tryed looking it up on Bigger pockets but i got nothing….
Thanks
Sam –
That should have read “9 weeks”…