For the purposes of property tax, they change formulas starting 4+ units to commercial models. 

Plus to realize that appreciation it costs you money to sell, refinance, and potentially pay taxes on the gain. 

Why not go buy a new one and not mess with the potential tax issues for you and transfers etc? 

If you have lived in the property for two out of the previous five years you could qualify for the 121 exclusion, where you get the first $250k ($500k if married) of the gain tax free.

It’s a higher barrier of entry investment with much higher returns (and tax incentives).  

However, these are the ones most commonly used:Five-of-Ten-Year Test: You must have materially participated in the activity for any five of the past ten years.500-Hour Test: You must have materially participated in the activity or activities for 500 hours in the current tax year.Step 3: Calculation your participation hoursEnsure you are tracking your participation hours.

My question is - is it more advantageous to have me own the business entirely so that I can capitalize on the tax deductions & tax refunds so that I can in turn contribute more capital to purchase future properties together?  

For a standard 3/2 with 1,200 sqft we usually spend 50-80k on a full rehab, 10-15k holding cost, 15-20% profit before tax, 7% cost of sale.

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).

I officially moved here years ago before investing but I’m wondering for my family whether it’s a good idea to have them invest in my markets here so if there are major tax/regulatory hurdles that would make this unreasonable.Thanks to all!