Investors & landlords


@wleuter wrote:

......things like furniture can be sold at a loss.


You can separate personal property from real property to get the shorter recovery period on the former (instead of 27.5 years), but within just a few years the basis of your furniture will be reduced to $0.

 

As a result, if you receive any price higher than $0 for the furniture when you sell, you will have a gain and that would be a Section 1245 gain where the tax rate on recapture is not limited to 25% as it is on Section 1250 property.