Expiring 2012 Tax Rates – Considerations

October 23, 2012 Author: Hossein Tolooee Category: Investors, Landlords, Owners, Property Management No Comments

With the 2012 tax rates expiring, I thought to recap where the 2012 tax rates, brackets, and capital gains rates are along with an example of how the marginal tax rate is calculated. As the example shows, one in the 28% bracket does not pay 28% of the income for taxes. The tax is calculated in an stair-step manner on…

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Adjusted Basis

September 2, 2011 Author: Hossein Tolooee Category: Investor's Corner, Taxation No Comments

Adjusted basis refers to the total cost of acquiring a property less any cost recovery (depreciation). So, Adjusted Basis = Purchase Price + Acquisition Costs + Capital Improvements – Cost Recovery. Example, You purchased a property for $80,000; paid 1.5% mortgage origination fee; Put a new roof for 5,000; and, kept the place for 10 years. The land is, say,…

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