If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

If anyone has advice—whether it’s general tips or insights about these markets—I’d really appreciate it! 

Estate Planning and Wealth Transfer: If you're building a portfolio to pass down to your family, life insurance ensured your heirs inherit your properties without the burden of estate taxes or forced sales to cover expenses. 3.

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

The other watchout is if you lose your job you are required to pay the money back quickly, like 30-90 days with most 401K's or the loan gets converted to a withdrawal that comes with tax implications and penalties. 

Almost every action taken in the economy is taxed and the faster the economy chugs forward the more taxes they collect.

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

My question is do I have to recapture all the depreciation for tax in 2025?

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.