Second, if youre doing fix and flipping in addition to your W2 income, how does that factor in to your normal taxable income from your W2?

He talks about how you can purchase a rental property, manage it as a short term rental during the year you acquire it, do a cost segregation study, use those "losses" to significantly reduce your taxable income that year, and then turn the property into a long term rental in the following year. 

I think you could split after sale for a non-taxable event, the total basis transferred in would be split across the two "new" properties.Calling @Dave Foster to give his insights here, lots going on in this one.

I'm hoping some of these EXPENSES will reduce my taxable income for 2024.I know there are rebates and TAX CREDITS for investing in Solar Panels.

Look at your previous years tax return, then go to your taxable income line. 

Hey Kevin, You're correct that in a Roth IRA, the tax advantages of depreciation, such as offsetting taxable income, are effectively lost since the account itself is tax-free.

In any case there is no taxable event yet.As far as your brother is concerned, it again depends on the nature of the transaction. 

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

These deductions reduce your taxable income, which helps maximize your profits.Finally, real estate provides diversification for your investment portfolio.

Since you're not working, you may qualify for REPS, but you need to meet the750-hour requirement and materially participate in your properties.The $300k withdrawal will be taxed as ordinary income, so using cost segregation to create depreciation losses could help reduce your taxable income.