But circumstances and tax attributes are very different for everyone - maybe someone has a large NOL they want to burn up or maybe they need to report income to get a loan. 

We are concerned about any liability that may be attributed to us 

Personally, I try to live by the code, "Never attribute to malice that which is adequately explained by stupidity."

. - If you dont want a taxable capital interest, your interest should only share future earnings and appreciation attributable to the profit interest.

@Matthew Wilson - I tend to use Google Earth (different than google maps) all the time along with the property assessors map to scout out local properties that have attributes that I like such as garages, parking, multis, etc.

.• Category 3: Net gain (to the extent taken into account in computing regular taxable income) attributable to the disposition of nonbusiness property and property other than property held in a trade or business to which the 3.8% NIIT does not apply.

CA has a law specific to 1031 exchanges, if you exchange a CA property for an out of state property and you later sell that out of state property then CA may assert the right to claw back (tax) the gain attributable to the CA property that would have been realized if it had been sold rather than exchanged at the date of the 1031 exchange.In this regard you may have annual reporting attributable to the out of state replacement property so CA can track what you have done with it.

We've grown our portfolio up to 22 units and have a mix of tenant payment methods: manual cheques (fun), e-transfers, bank counter deposits and some have done PADs at their local branch.Our challenge has become with t...

For ADU's - I've seen older posts on them being attributed limited value despite the additional sqft, bedrooms, bathrooms, etc. they add to the property, but the methodology seems to be geography specific.

You cannot depreciate the portion of the purchase attributed to the value of the land.