Selling
What getting out costs
The offer price is not the number you keep. Between recapture, capital gains, the net investment income tax and the state surtax, half of a South Shore sale can go somewhere other than your account. These are the pieces, with the arithmetic showing.
Work out what your sale nets
Put in your purchase price, depreciation and payoff. Get recapture, federal gains, NIIT, the Massachusetts 5% and the surtax, line by line.
GuideThe depreciation you took comes back at 25%
And it applies whether or not you ever claimed it. What that costs on a real South Shore property.
GuideThe 4% surtax nobody warns a landlord about
One sale can put an ordinary owner over the $1,107,750 threshold for a single year. Three ways around it.
Due diligenceWhat your buyer will ask for
Deleading letters, the Title 5 inspection and every security deposit you hold. Assemble these before listing rather than during the inspection period.
TenantsYour tenants come with the sale
A lease survives it, the deposits transfer with their liabilities, and an occupied unit removes the buyers who would have paid most.
TaxThe one that has to be set up before you sell
Defers the whole bill, recapture included. Two clocks that cannot be extended for any reason, and an intermediary who must be engaged before the closing.
Want a number on your specific property?
The calculator handles the general case. Condition, tenants and timing are the difference between an estimate and an offer.