And then they deducted $10k/mo is lost rent from their taxes. 

Also...in example, spending $20 to put your logo on a pair of $60 pants - even if you get the tax deduction, you likely would have had more money in your pocket to just wear normal pants without a logo.As noted - clothing should not be suitable for everyday wear in order to be a tax deduction. 

THAT'S how much you can deduct. 

Happy to run ROI (cashflow, appreciation, tax deductions) calculations with you.

🧮It sounds like you have these priorities for your next PNW property besides the standard FI road map:- Something that has positive ROI (appreciation + cash flow + tax deductions + loan paydown) purchased at $1M with 20% down and ~6.8% interest.

This can give you bigger tax deductions sooner, which might help balance out the tax you owe on your sale.Capital Gains Exclusion: Since you lived in the property as your primary residence for at least two of the five years before selling, you might already know about the $250,000 (single) or $500,000 (married filing jointly) exclusion on capital gains.

In a few months, we will be receiving a significant amount of income as a lump sum that would pass through as schedule K income after the LLP's deductions for the 2024 tax year.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

I am also thinking there may be tax advantages because both of the properties I currently own and rent make a considerable amount of money that after all deduction, depreciation etc.

As for closing costs, you shouldn't have to pay anything out of pocket, the costs would be deducted from the cash you pull from the property.