Help me solve this puzzle....

[Lauren Johnson]

I have a lot that I recently purchased using 1031 exchange money from the sale of another property. I have the opportunity to sell it using seller financing, but I'm trying to figure out how I will be taxed and whether bonus depreciation on another property I will receive for 2022 will offset at least part of it. Yes, I'm going to talk to my CPA but just trying to make sure I'm thinking of everything.

Here are the details:

*Purchase price of lot $99,000 bought with 1031 exchange funds
*Sale price $175,000
*Held less than 1 year
*Doing seller financing with $25k down payment and 10% interest -accrues from day 1, but payments start after 12 months w/balloon for balance at completion of their project.
*Cannot 1031 exchange since I'm doing seller financing and therefore won't collect most of the money until next year.
*Will receive a K1 for 2022 with possibly $200k in bonus depreciation on another investment

Will this bonus depreciation offset the capital gains I would owe or no since it is taxed as ordinary income?
Will I also have to pay tax on the $99k that I used to purchase the lot since it was bought with 1031 funds?

Just not sure what the best way to handle this.... Thanks!