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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.
‎October 6, 2023
8:47 AM