Additionally, there is specialized equipment including diagnostic machines and hydraulic lifts.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

@Rud SevIt's really your CPA's job to walk you through your tax return.

One thing I would mention though - doing STR just to save taxes often leaves you operationally unstable or too detached from the management to be successful.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

It takes a lot of training and continuous study to stay on top of tax law, especially with all the changes in real estate tax rules.

You can take a distribution from the IRA, pay the taxes (plus penalties for premature distributions), and then use the funds as you see fit.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

.- Will still be challenging to acquire a SFR at a low enough price to justify the cost of any conversion.Regarding Michigan property taxes, we have a one-page explanation document we'll share if you DM us. - The challenge in Detroit is that the city is "deliberately" keeping SEVs low to not scare investors away over property tax increases.

Additionally I spent $35,000 on property taxes, $17,000 on insurance, $35,000 maintenance and repairs.  

Speak to your tax advisor about tax ramifications of giving your LLC a property