Mike - Also remember that you will pay tax on the depreciation recapture first and then the balance at the capital gains rate. Please consult with your CPA to determine the tax.
Second - if there is any chance that you will want to use part of the $1.8Mill for reinvesting in real estate - this is the time to do so. Even in the best case if you only had capital gains tax (assuming no state tax) you would have remaining 85% of the $1.8M to reinvest - so your return would have to be greater on the 85% to get the same monthly/annual cash flow compared to reinvesting 100%.
Good Luck,
Timothy J Folkers, CPA
Principal
Folkers, Choi & Associates
An Accountancy Corporation
18818 Teller Ave., Suite 109
Irvine, CA 92612
(949) 399-1040 ext 126 -Direct
(949) 399-1041 fax
Tim@FCA-CPA.com
www.FCA-CPA.com
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