Are there any Depreciation recapture or capital gain Tax dispositions that need to be resolved with the exiting member?

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.

Despite the equity We also want to take advantage of tax advantages we did stay in the property for 2 years !  

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

Keeping clean records from day one really helps when tax season rolls around.

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?

Of course to maximize your tax benefit it needs to be sustainable over time. 

If you live there 2 years or more before selling you will be exempt from tax on the 1st $250k in profit which is a nice bonus. 

STR seems to have better tax benefits (in the right market) but is it worth it at a distance ???