But you'll need to rely heavily on your accountant's guidance so that you do not take out too much taxable gain.  

By accelerating your depreciation schedules, you reduce your taxable income which in turn increases your operating cash flow.

Depending on the county, the assessor will pick up your sale price and adjust your taxable value to 70-100% of sale price.Insurance: Have your insurance broker get you a soft quote based on your lender's insurance requirements.

You will receive most if not all your benefit in year 1.Year 1 is where you will spend money furnishing the house and potentially taking bonus depreciation via cost segregation study.Year 2 and onwards, assuming you got a performing asset is where things will reverse tax wise and you will likely be reporting positive taxable income.

The most glaring example: "taxable income" is very different from actual profit as measured by cash received.2.

Using basic numbers, assuming I sell a property for $10M and after cost basis is accounted for and mortgage is paid off, I have a net taxable gain to me of $3M.I'd like to purchase a rental lake house property for $1M (funds coming from that $3M taxable gain). 

The SP500 has returned "long term" 8.4% nominal and 6.9% real, per Dr Jeremy Seigels 1801-2023 data set and would be fully taxable at sale. 

I wanted to get the opinion of others on what the best strategy is to deploy capital back into the properties to in order to reduce our taxable income while also continuing to build wealth.

(Remember, a loan is not a taxable event.)Given that mortgage rates are also close to 7% this won't boost your cash on cash returns much, but a higher percentage of your free cashflow will be tax sheltered, potentially all of it. 

If you have little to no taxable income, you will qualify for credit through the ACA.