If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

This is tax free. 

It is my understanding that the new owner will have the house at the cost basis of my purchase price, for calculating capital gains taxes or depreciation.For gift tax purposes for you - FMV.For capital gain tax purposes for the recipient - your original basis/purchase price 

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

Sellers rarely mind the low deposit and extended closing period due to the nature of the property, or at least they can be made aware of the fact that their lot has issues that will take MY time and MY money to solve and then they come around.My terms on the flip are: Minimum 10K spread between purchase and flip value.  1-2K deposit upfront to hold the property for 7 days then the deposit becomes non-refundable after the 7th day and the buyer has the same amount of time that I originally negotiated with seller typically 8-12 months(its a purchase contract but because of contingencies its essentially an option).  

We are now married and I expect we'll file our 2024 taxes jointly.

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

Any tax pro who is familiar with REI will be able to help you.

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.

Why would the government waste our tax dollars paying higher rents than the market?