Disposition analysis
A four-way comparison for an asset you already own: keep holding, refinance and hold, sell outright, or exchange into replacement property. Same horizon, same discount rate, one page.
Why it is done this way
The hold-versus-sell question is almost never asked with the same assumptions on both sides. The hold case gets modelled with today’s rent and a friendly appreciation number; the sale case gets modelled at a gross price with the costs waved off.
Putting all four paths on one horizon with one set of assumptions usually changes the answer, and it always changes the confidence.
The most common surprise is depreciation recapture. An asset held nine years has accumulated a recapture liability that comes due on sale, and it is taxed at a different rate to the gain. It is not a reason not to sell. It is a reason to know the number first.
How it runs
Establish the position
Basis, accumulated depreciation, current loan balance, current market value. Most of these are known; the last one is the argument.
Model the four paths
Hold as-is, refinance and hold, sell, exchange. Identical horizon and identical assumptions across all four, or the comparison is theatre.
Cost the exit
Commission, title, transfer, prepayment penalty, depreciation recapture and capital gains at the rates that apply to you. The gross sale price is never the number.
State the calendar
A 1031 exchange has a 45-day identification window and a 180-day closing window from the date of transfer, and a qualified intermediary must hold the proceeds. We describe the mechanism; your tax adviser confirms it applies to you.
Questions we are asked
Can you tell me whether to do a 1031?
No. We describe how the mechanism works, model the outcomes under stated assumptions, and show you the calendar. Whether a deferral is right for your position is a tax question for a licensed adviser, and we say so on the page.
What about cost segregation?
We can model what a study would do to your depreciation schedule and therefore to after-tax cash. Whether the study is worth commissioning, and whether the results survive scrutiny, is between you, the engineering firm and your CPA.
Not investment, tax or legal advice. All returns shown are estimates produced by a model from assumptions you can change, not offers, appraisals or guarantees. Real results differ. Consult your own licensed advisers before acting.