Say, I have a potential client that has asked me to value a 7 unit apartment building.

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.

MOST don't try to trick their clients! 

We have about 10 clients in your situation.

While adding compliance costs (filings, payroll), this structure is beneficial, especially for larger portfolios.This post does not create a CPA-Client relationship.

Consult a tax professional to optimize deductions and explore strategies like Real Estate Professional Status or short-term rental loopholes to apply depreciation to non-passive income.This post does not create a CPA-Client relationship.

Some custodians are really good but have higher fees, so using them if you have a low dollar account may not be the best move and vice versa. not specifc to ET, but as a GP, we have worked with most in regards to assisting clients get their investment coordinated.

I remember years ago our attorney reviewing one such issue for a client that was coming over to us. 

@Simon Girmay we've got many clients from Toronto and Vancouver areas investing in Detroit.DM us...

Highly recommend starting close to you so you can get eyes on the property if you do decide to purchase a true rental.