Re: How Long to hold - Posted by phil fernandez
Posted by phil fernandez on December 31, 1998 at 08:54:39:
To sell or hold is always an interesting question. I don’t think there is a standard answer here. I have always said if you do not have a specific need for the equity, why sell the house. If you sell, your cash cow has stopped producing.
Plus you have the miserable tax consequences. You have dpreciated your rental and now when you sell the governmnet will recapture that depreciation on top of being taxed on the appreciation. One way to avoid the tax consequences of selling would of course be to refinance, but have a use for this refinanced money.
I plan on dying with my rentals so my estate will get the properties at it’s current far market value.
Others will have their ideas, but hold and die works for me.
Happy New Year Everybody.