5 Tax Mitigation Strategies Every Real Estate Investor Should KnowAs a real estate investor, every dollar you save in taxes is another dollar you can reinvest into growing your portfolio.

And you now have to file three tax returns:- partnership tax return- your individual tax return reporting 1/2 of the partnership losses- your partner's individual tax return reporting their 1/2 of the partnership lossesAnd while partnership return can be DIY-ed, it probably should not be.

She is a truck driver and had always claimed she is on the road and can't talk.

California does not recognize Real Estate Professional (REP) status, but you can still claim it on your federal taxes if you qualify.

@Daniel MadhavapallilYou should hire a tax professional. 

The tax paid from your lending proceeds should be the equivalent of your tax rate I would think.

Hence the lot on which the house resided was taxed at a 45% discount based on actual value, while the tennis lot was taxed at about 4 times what it should have been by value. 

Use that loan to pay the back taxes and get things under control.

You still claim the income as miscellaneous income and deduct property taxes and mortgage interest (subject to SALT and other high mortgage limitations) on your Schedule A, but that's it.2. 

There are many tax accountants on Bigger Pockets that can help you with your situation.