I have almost zero in taxable accounts outside a savings account.

Here’s how the ATI exemption process typically works:Trigger Event: An Assessable Transfer of Interest occurs when a property is sold, inherited, or otherwise changes ownership.Reassessment: Following the transfer, the county reassesses the property’s value, which could result in a higher tax bill.Application for Exemption: The new property owner can apply for the ATI exemption to reduce the taxable value of the property.

If you have already completed the exchange and are facing boot, a cost segregation study can help reduce your taxable income by increasing depreciation deductions, but it won't change the fact that boot is recognized.As @Bill B.In a partial exchange the tax is based on the boot received, not prorated across the entire transaction.

@David Avetisyan If you sell your home for $510K and provide a $10K seller credit, your taxable gain is based on the net sale price of $500K ($510K - $10K credit), as seller credits reduce the gross selling price for tax purposes.Tax Impact in CaliforniaCapital Gains Calculation: Your gain is the net sale price minus your adjusted cost basis (purchase price + closing costs + capital improvements).Primary Residence Exclusion: If you’ve lived in and owned the home for at least 2 of the last 5 years, you may exclude up to $250K (single) or $500K (married) under IRC Section 121.California Tax: Capital gains are taxed as ordinary income at rates up to 13.3%.The $10K seller credit lowers your taxable gain.

Lower rates!

Buying as a vacation rental could potentially qualify for a lower interest rate, but you’ll likely need to provide proof of personal use (even if minimal).

These historical trends suggest that lowering the tax burden can free up capital for reinvestment and fuel a fresh wave of property acquisitions and development projects.But there’s more to the story than just tax cuts.

The seller is not willing to lower the price, so I decide to walk out the deal.

I am considering purchasing in Lower Dimond and any of the directly adjacent neighborhoods.

A few things to note-Loan payoff isn't part of the calculation of what taxable gain will be.