Land doesn’t depreciate, and while buildings require maintenance, they usually gain value as markets grow, demand increases, and inflation takes its toll.Real estate investors benefit from a significant tax write-off based on the concept that properties lose value over time, even as their market value skyrockets.

Hi Sergio, I think there are way too many variables to be able to gain any real insight from responses here.

STR income isn’t considered passive if you meet material participation rules, allowing STR losses to offset W2 income.

I have suspended Passive Activity loss that would reduce the gain, but not eliminate the gain from tax POV.

Another consideration is that if you do a 1031 exchange back out of CA the state is a "claw-back" state so CA will try to get their capital gains eventually.

Option C (selling) simplifies finances and provides a large lump sum (~$270K), but triggers significant capital gains taxes, potentially increasing Social Security taxation and Medicare premiums.

For a beginner looking for long-term real estate investment growth, here are a few great options:Buy-and-Hold Rentals: Purchase a property to rent out, which builds equity and generates passive income over time.

.- BP recently introduced passive pockets. - ideally every operator is sound at all aspects of being an operator, but there are operators who are outstanding at the operational side that are a bit lacking on the communication side.  

Hi Saju,Well it is an exciting market with lots of future developments happening, all aligned with the popular Dubai 2040 vision.As for how the market is for US investors, there is no local tax on capital gains, or tax on rental income.

Yes you have to pay capital gains on selling your properties, but you will recover that quickly with the high returns.