Lots of properties are acquired with an owner-occupied loan in a 1031 exchange, especially primary homes that have will have an ADU for rent or that contain a large office space for the homeowner/taxpayer. 

Your opinion on refinancing reminded me of what a realtor recently told me...you marry the house and date the interest rate.

Then as a married couple they can write off their losses against their W-2 income. 

. • Establish solo Roth 401k• Make quarterly estimated tax payments (?)

Far too many taxpayers draw up their tax return in their head without a real plan.

By turning it into a rental, you may be on the hook for capital gains tax in the future vs using the 250k exemption for single filer or 500k for a married couple that files together on capital gains if you were to sell now. 

Depreciation is a benefit to taxpayers because and it helps taxpayers defer taxes if it was outside of a retirement account.Therefore, again, holding real estate within a retirement account is normally not required / not recommended. 

While we basically think of those certified mail notices as just something to prove the taxpayer got the delinquent notice, it is more than that.

My name is Rob, Im married to my wife Melanie and we live in Columbia SC.

Additionally, there's a fixed self-employment tax.Income Tax: 22% * $70K = $15.4KSelf-Employment Tax: 15.3% * $20K = $3.06KTotal Tax Due: $18.46KRemember to account for any state taxes as well.To defer taxes entirely, you could utilize a 1031 exchange, which allows you to reinvest the proceeds from the sale into a similar investment property, thus deferring the tax payment until a later date.Example #2: Long-Term Capital GainsNow, consider a scenario where you hold onto the property for over a year.Project Details:Property Cost: $70KRenovation Costs: $50KResale Price: $200KProfit: $80K ($200K – $50K – $70K)Since self-employment tax doesn't apply, you only need to calculate the long-term capital gains tax.