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you sound like you have extensive experience with shady real estate deals
Not shady. Perfectly legal. This is a crazy story. I will never forget the day I learned about the Crane Doctrine. I was taking an advanced real estate class in law school. I learned about the Crane Doctrine in the morning. During the lunch break I watched footage of The Challenger exploding. It was a sad day, but it was also the day I realized why everyone wanted to own real estate.
Reminds me of the step up basis for inheriting stocks. When you die and your heirs inherit your stocks, the cost basis they use when they sell it is based on the value when they inherited it, not the value when the stock was purchased. You can pretty much defer paying capital gains tax forever by doing this.
Personally, I love it. I can't wait for my kids to erase all the capital gains I supposedly owe on my stocks.
sounds sneaky. And clever. And exeeeedingly profitable.
v nice, sir, v nice. I won't tell if you don't!
tell me the difference between stupid and illegal and I'll have my wife's brother arrested
If you really want to get pissed off about Boomers (not mentioning any names) using these techniques, think about using the Crane Doctrine AND 1031 exchange in tandem: writing off the full purchase price over time while only investing your down payment, then avoiding the recapture of that depreciation by using a 1031 exchange into a higher value property. Rinse and repeat.