This would allow you to deduct the $11,000 immediately in 2023, reducing taxable income for this year.

There may also be costs associated with setting up the accounting for the shells, and preparing inital shell formation meeting minutes, etc...You will also need separate bank accounts, and a war chest of money to defend them if/when needed.Ask your asset protection attorney vs salesperson for a quote on the cost to defend, and how much it will cost to move title to the shells.Find out if moving the title creates a taxable event for you with the IRS re.

@Ben StanleyGet liquid first start by saving money in a taxable account

If W2 income was $300k and losses are now $130k…we can write those losses off against the $300k making taxable income -$170k.

Of the remaining $200,000 gain, 75% (6 out of 8 years) ($150,000) is attributed to the time the property was rented and is therefore taxable at the long-term capital gains rate.

The real estate appreciation, you can reduce your taxable income, and the interest on your mortgage is usually deductible, which is a nice bonus.

Real estate is an excellent way to leverage deductions and reduce taxable income.

You now have 100k in taxable capital gains. 

I talked with our CPA about doing a partial disposition but he thinks that "the insurance proceeds won't be taxable assuming all the money was put back into the property" and the "partial disposition is probably less favorable than doing a direct offset and just not putting new assets into service".I understand the first part ("the insurance proceeds won't be taxable"), but I disagree with not doing the partial disposition.

Are you utilizing any cost segregation studies/real estate professional status to lower the taxable income?