Section 1.165-1(b) provides that, to be allowable as a deduction under § 165(a),a loss must be evidenced by a closed and completed transaction, fixed by anidentifiable event, and, except as provided in § 165(h) and § 1.165-11, actuallysustained during the taxable year.

Unless he’s willing to give you 100% of the gain for free (nice guy) he has a taxable gain.

Next question, if you use these write offs to minimize your taxable income, can this hinder your ability to purchase other properties due to showing no income on your taxes? 

If you buy the wrong thing or move the money the wrong way, it creates a taxable situation and in the worse case, it "breaks" your account. 

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

I would talk to a tax advisor prior to making any decision you make so they can help you weigh out your taxable implications.

The idea is that the percentage of the income that is derived from the debt financing is taxable.  

If I am correct then anything sold above $100k ($400k-$300k) is taxable taking into account depreciation recapture.

Here it goes...Will contributing to a traditional 401k to reduce my taxable income now reduce my W2 income essentially limiting my buying power for acquiring more RE?

Is this "fee" taxable ?