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Hello fishes,
So what is your experience in increasing ECTC while getting subsequent job offers? How much increase shall we ask on top of previous offer? E.g. Current max I have is 25lpa, how much can I ask HR from next company? Infosys Accenture Deloitte KPMG Hashedin by deloitte Nagarro Tata Consultancy HCL Technologies Wipro
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So that I can still claim this exemption if I can’t sell by Nov. Unwilling to sell at “fire sale” price just to sell. My tax advisor said “Right now I don’t the answer too, it may have exception. You can call IRS see if they know anything.” Thoughts?
Mentor
IRS is going to need every dollar it can get, and this tax rule is intended to encourage home buying which is going strong. Unless there’s a big drop off on housing demand / prices, I don’t see any chance that an exception gets enacted this year. Are you making decent rental income on it? Do you need the money?
Thx for the input. Maybe making $100/mth profit; nothing exciting but better than losing money. And no, I don’t need the money.
I assume that you’ve been renting it out the last 3 years (2 in five rule). I doubt that this rule will be eased at all - you may want to throw it on the market at a good price right now and see if anyone bites. Is there a current living in the unit right now?
Mentor
Just be warned that it is very difficult to find new tenants right now. I just had an apartment come vacant and it was harder to fill it than I’ve ever experienced in the past 9 years. I’d keep you current tenant with a small bump (2-5%), or list it for sale and see what happens. Apparently sales are still going strong in many markets
Btw if you did not live there yesterday you’re already going to pay tax on the pro rata portion of the 5 years that you didn’t live there.
Agree and I’ve only done cash out refis, never done a 1031. However once you own a property long enough for it to fully depreciate, a cash out refi won’t bring back your annual depreciation expense to offset rental income. 1031s tend to make more sense on larger / more expensive properties where you want to keep your equity rolling and leveraged and the fixed cost of hiring a 1031 intermediary is negligible.