@Pretty Khare As Ruben and John mentioned above, you can utilize a cost segregation study on your STR property to reduce taxable income (or create a taxable loss) to offset against your W2 income, but you need to ensure you are following the IRS guidelines very carefully.

Benefits of cost segregation really come down to personal tax positions… they can definitely help you lower taxable income but it’s situationally dependent. 

From online research, I was able to find out that other cities in Ohio tax all your income (w2 & rental income) if you own a property there & some give you a small credit for taxes paid to other cities.My question is, if I buy a property in Cleveland (or a CLE suburb), would my w2 income be taxable in Cleveland (or a CLE suburb)?

By accelerating your depreciation schedules, you reduce your taxable income which in turn increases your operating cash flow.

Can Only a PART of paid OPTION Consideration Funds be NON Taxable ?

If that is the case, to understand this you have to look at the previous year's taxes for valuation - especially what the taxable value was for the prior owner.I suspect this is very much a first time buyer's issue - where you weren't expecting the increase, but typically there is an increase to market value.  

I'm not from your state - but in Florida your taxable basis is established by your purchase price at the time of the sale.  

Are you allowed to use let’s say 230K of the deduction in the year it was realized to bring taxable income from W-2 down to 70k and carry forward the 70k to the following year.

I know there is an ATI exemption that reduces the taxable value by ~25%.Anyone else went through this and can advise on how to move forward with this?

McElhannon Sales price - (purchase price+ expenses) then multiply by long term taxable gains rate.