Hi,We recently (Aug 2024) bought commercial land of around 2 acres. this was part of bigger commercial lot (around 25 acres) which had AG exemption and so the taxes that they paid was around $20 each year. we received a 'AG ROLLBACK' letter from the appraisal district that starting 2025 tax year, we will be taxed at it market value resulting in additional taxes, interest and possible penalities for 3 prior years.

But the IRS has said that it is not appropriate to purchase from a related party when the purchase is an attempt to avoid tax. 

If you are going to be doing the rehab work in exchange for equity then that value needs to be determined up front with a specific timeline that you have to adhere to in order to earn your equity.

Taxes have to be paid, so does insurance, what about maintenance? 

Do you work with any specialty tax firms to help us small business owners get access to R&D tax credits, cost segregation and other specialty tax credits?

The patent on the 30 year with taxes and insurance was 3900 or so.   

What you owe doesn’t affect how much tax you owe. 

My payment with insurance & taxes is $1425 a month.

As Dan said though, there are many tax benefits.

As more people placed more properties in STR inventory, and as more municipalities taxed and regulated the industry, the profitability of the overall industry has reverted to a much more aligned (lower) risk adjusted return.