Marquette — Text Thread

Patricia stays tho?

A piece

You got the breakdowns of the paid off buildings? You got the mortgage payoffs listed but not the buildings value after mortgage debt is wiped

He says

The only thing I'd still want nailed down: Illinois capital gains tax. That $171k federal estimate could have another $30-50k sitting on top of it depending on how the gains are structured. Worth running through your accountant before you sign anything — could trim that $238k cash noticeably.

Just need Princeton purchase price. And LaSalle for unit. I think I remember the rest

So you're walking away with closer to $180k cash, not $238k. That's a meaningful difference — nearly a 25% haircut on the cash position just from state taxes. Still think the deal makes sense structurally (clean portfolio, debt-free Marseilles properties, $112k/year passive), but your accountant needs to confirm the federal number too — $171k federal on $1.18M gain implies roughly a 14.5% rate, which could be right if it's blended between 15% and 20% long-term rates. Worth verifying before you commit.

What could actually reduce your taxable gain: • Capital improvements you made over the years (new roofs, renovations, etc.) — those get added to your basis and reduce the gain

What could actually increase your tax bill (important): • Depreciation recapture — rental properties are depreciated over 27.5 years. Every year you've owned these, you've been (or should have been) taking a depreciation deduction. The IRS taxes that back at up to 25% federally when you sell. If you've owned some of these 10+ years, this could be a significant number on top of everything else. This is the one I'd flag hardest to your accountant. Depreciation recapture on 7 rental properties held for multiple years could add another $30-60k+ to the federal bill

You're right — my bad. If it's already in that $171,750 federal number then it's accounted for • Federal (incl. recapture): $171,750 • Illinois: $58,560 • Total tax: ~$230,310 And net cash lands at roughly $179,500 after everything. The structure still holds — just wanted to make sure that number was accurate before you make a decision on it. Clean portfolio, free and clear Marseilles, $112k/year. The cash out is thin but it's not the point of the deal.

So what now? List them for slightly higher than these numbers and these numbers are the bottom dollar sale prices?

Oh. Well that's interesting

So you want to call Bonnie and dump?

Scenario two it is

But the 90k is post tax. Already paid the capital gains

I want to see what this thing can do. Say. Okay if I pick scenario too. And this happens in this happens and this happens and this happens and this happens then what.

What if I pick scenario 3. And this happens in this happens in this happens

Then at the end of it. What's the best option?

Or better than this happens. There's a 30% probability that this happens. What if we changed all the mortgages to be operating at 6.5% What about 5.75%

I just want to see if this thing can hold it all

This entire thing looks completely different from my perspective

Scenario 2 alone is exactly the same as now. Except I have 90k in hand rather than in property.

It's a pass through entity. When you receive it it's not taxed again. Like the Ottawa 4 sale

A few days ago you're talking about banging your head against the wall because of all the variables. I suggest running it through a large narrative and feeding it to the AI. End of conversation. You never reply. Then last night — you send me all the analysis. Looks like a lot of work you ran through ChatGPT. Most of the heavy lifting already done. You didn't want to use my tool to organize it. Fine. I run what you sent through mine anyway and the only thing it flags is the Illinois state tax issue. Again, fine. This morning, first thing I do — again, just to mess around — I run it through a beta version of the narrative variable analysis. I see what it spits out, dress it up so it's easy to read, send you the link. From my perspective, that's silver platter shit. I have no real skin in the game here. These are hard decisions that you are struggling with. The end result is your call. My personal and financial stress comes from other places right now. Not this. Everything I'm offering is help. That's it. I'm trying to help you. The last thing I proposed was to add as many variables as we could possibly think of and run it through the AI dashboard. Let it sit with all the context. Instead you want to calculate your own variables on your end and come up with $83k before the split — without explaining what variable you added or why — and then act like I'm a dumbass. If you think all of this is stupid — which is honestly the only conclusion I can draw from how you've responded to all of it — then drop it. You've got it from here. I'll go work on something else.

I'm all good on Marquette for a while. Got to take a step back. My roofing company is swamped. And I got three kids, a couple of them still crap themselves

We can handle this all real f****** quick