For a rental property, the gain is subject to capital gains tax (15-20%) and depreciation recapture tax (up to 25%) on any depreciation claimed, unless the proceeds are reinvested.To minimize taxes, consider reinvesting the sale and insurance proceeds into another property under §1033 or converting the property to a rental before selling to claim depreciation deductions.This post does not create a CPA-Client relationship.

I've been doing some light reading, and it sounds like refinancing that property and using the proceeds to reinvest elsewhere might be a better option. 

The QI will facilitate the transaction by holding the proceeds from the sale of your New Jersey property and using them to acquire the replacement properties in Florida.Make sure to follow the 1031 exchange timelines: you must identify potential replacement properties within 45 days of selling your New Jersey property and complete the acquisition of the replacement properties within 180 days.  

I’ve heard this can have benefits, but I’m not sure where to start.If anyone has advice on how to proceed, I’d love to hear it!

And end of year actuals never pencil out like the spreadsheet...I'm not saying that it's a bad idea; I would just urge you to proceed with extreme caution.

However, the challenge with MTRs lies in the CC&R (Covenants, Conditions, and Restrictions) and HOA (Homeowners Association) regulations.To proceed with MTRs, it's crucial to carefully review the CC&R to ensure that leasing out a portion of the lot to tenants is permissible.

If selling properties, a 1031 exchange defers capital gains taxes by reinvesting proceeds into another investment property, while Opportunity Zone investments can defer or eliminate capital gains tax over time.Long-term rentals should be held in an LLC for liability protection and tax efficiency.

It sounds like the person above either wasn't ready, didn't put in the work needed, or is just another internet troll out to bash someone for no good reason.IM me if you have further questions about Matt Scott and I am more than happy to go over the good, the bad, and the ugly! 

Instead, it reduces the seller's net sale proceeds, which may impact the amount required to be reinvested to fully defer capital gains taxes.For the buyer, the credit lowers the property’s basis rather than being deductible as a repair expense.

The last thing is you must use all of the net proceeds in your exchange.