Hi, We have a nice property that we rented to a married couple. 

When a building is sold, the taxpayer or the seller must recapture depreciation previously taken on tangible personal property.  

My W-2 for 2024 is over $250K which is the reason why i want to use REPS and MAterial Participation in 2024 by doing a cost seg  to offset W-2. 2- In 2024, two things happened: I married my wife who is a realtor and I also sold 3 of the rental properties which created a capital gain of $220K (one rental was a loss). 

I dont think first time buyers usually even know that after owing the home and living in it for 2 years any profit up to 250k for single and 500k for married is tax FREE. the absolute best tax treatment we have in the US. in Markets that dont move as much might not be the same benefit..

Lastly, the safe harbor for small taxpayers allows you to deduct expenses under a threshold of 2% of the adjusted basis of the property up to 10k. 

Advantages are that you only need to form and pay for the initial series LLC, file one franchise tax report, file one tax return, and pay one franchise tax payment if required by the state the LLC was formed in. 4.

However, the exact treatment may depend on your accounting method (cash vs. accrual basis), but most individual taxpayers use the cash method, meaning they typically report expenses when paid.

In connection with its duties, Qualified Intermediary shall be protected for acting or refraining from acting upon any written notice, request, consent, certificate, order, affidavit, letter, facsimile, email or other communication or document furnished to it under this Agreement and to have been signed or sent by Exchanger or any of its officers, attorneys, or other representatives, provided, however, that any instructions relating to disbursements of funds shall be subject to the provisions of Section 3.4 above and the Disbursement Instructions shall be signed by the taxpayer or submitted by the taxpayer online via the Software."

Now if they got married, had kids, and a vast majority still lived in apartments that MAY have the makings of a trend.  

While you may be eligible for a tax exclusion of up to $250,000 ($500,000 if married) on the sale of your primary residence, any period during which the property was used as a rental is considered "nonqualified use."