If a cost segregation study was performed, the accelerated depreciation may further reduce the property’s basis, potentially increasing taxable capital gains when sold.Depreciation recapture will occur when you sell the personal residence, so it’s essential to keep detailed records of all depreciation claimed while the property was used as a rental to ensure accurate tax reporting at that time.This post does not create a CPA-Client relationship.

Just make sure you use a very honest agent that doesn't sugar coat anything and check the crime statistics and household income.

Having a new LLC reduces my liability and separates risks on my syndication deals .

No, taking out a HELOC and spending it does not reduce your taxable capital gain when selling your home.

The Yale Law Journal article, "Zoned Out: How Zoning Law Undermines Family Law’s Functional Turn," highlights this issue, noting that while family law has evolved to recognize diverse family structures, zoning laws have lagged behind, potentially hindering innovative housing solutions like co-living.Challenges for Co-Living InvestorsFor real estate investors interested in co-living, these restrictive definitions can lead to:Legal Barriers: Difficulty obtaining permits or approvals for co-living spaces due to non-compliance with traditional family definitions in zoning codes.Operational Challenges: Potential fines or legal disputes arising from housing arrangements that don't conform to local zoning definitions of a household.Market Limitations: Reduced ability to meet the growing demand for affordable, shared housing solutions.Advocacy for ReformThe Bloomberg article, "Why Are Zoning Laws Defining What Constitutes a Family?"

Employee salary deferrals (pre-tax or Roth) are subject to Social Security (6.2%) and Medicare (1.45%) and must be reported on W-2 Boxes 3 & 5, though Box 1 (taxable income) will be reduced for pre-tax deferrals.

The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.You should focus on increasing earnings and learning how to manage your budget.

One thing I am seeing a lot of is sugar-coating and hopeful optimism on the part of GPs and lenders—and that’s my takeaway from your notes on this CEO call.  

Real wealth is built over time with consistent effort, even when things are difficult.Increase earnings, reduce expenses, save, invest.

Capital Gains & Exit Strategies: If I decide to sell in the future, what are the best ways to reduce capital gains taxes?