Developed Lot W/approved Plans
Principal seeking 650k for lot w/developed plans-plans approved for two medical offices and 8 apartments. 65OK FOR LAND 1,212K FOR BLDG.
Complete project has this property valued at 5mil-what else should I be looking for in this transaction?
All arch,mechanical and structural plans are approved!
Your request seem to be short by 1.2 million based on the total needed. Land 650k and building 1.2 total 1.8k
El Jeffre
LTCG is 15%. I am planning to pay the 15% (plus 25% on the depreciation recapture) rather than do a 1031 since I think the LTCG rate is going to go up next year, regardless of who wins the election. I figure I might as well eliminate some of the deferred tax liability while the tax is low...
ITBInvestor, I really really hope you are wrong.... (keeping my fingers crossed)
More accurately, the LTCGR is 0-15%., depending on the bracket a particular portion of the gain falls into. If you are paying 15% on all of it, you need a bunch more rentals so you can use those depreciation deductions to reduce your tax liability.
Chris
For taxpayers in the 15% or 10% regular tax brackets starting in 2008 the long term capital gains rate is 0% until 2010 (different rules for children with "kiddie tax"
Of course, recapture may still make it not worthwhile-
My info says a married couple filing jointly in 2006 using the standard deduction was in a 10%/15% tax bracket until adjusted gross income exceeded $78,200.
If you have flexibility for your income in a particular year, this could be of interest-
Thanks Mat3Sigma,
After reading some posts from a couple of beginners on this site. The advice was to get a good team together: I have a great team for my own purchasing RE/Landlording (broker, attorney, CPA etc) - but I should be making connections w/ builders and developers and build a business this way.
I am at the crossroads of going back to either a steady job or keeping myself occupied with my own business proposals. I am always looking for projects that I can buy/manage, but San Francisco is often cost prohibitive.
I am curious what developers and builders think of architects out there...
I found working with the county supervisors office helped cut thru the red tape. I ended up not getting to bid on the land as it was an election year, and new officials were elected and they cancelled the auction.