If you qualify, you can use passive losses, like those from depreciation, to offset your active income.

We managed to navigate it, but it was a lesson in the importance of understanding both federal and state regulations.Given your location in Boston, Massachusetts, it's especially pertinent to consult with a qualified intermediary or tax professional familiar with both federal and Massachusetts state laws to ensure a smooth exchange process.

These expenses can create a paper loss, which may offset other passive income or carry forward to future years.If you qualify for Real Estate Professional Status (REPS) or actively manage a Short-Term Rental (STR), the losses can be applied against your active W-2 or business income, reducing your overall tax liability.

Do we need to go through the whole condemnation process to qualify the transaction for a 1033 exchange?

No W2 is required for DSCR Loans - one of the main benefits as its strictly no income verification for qualifying.

The structure for this is a discounted sale, lease back, buy back.One of the partners is a qualified intermediary as well that understands the plumbing behind it to make it 1031 compliant.If you have any questions on that - feel free to give me a buzz.

Some states (NOT ALL) offer reciprocity for real estate licenses in certain other states, BUT that just means that if you have a license in one state that you can use that to qualify for a license in other states that offer that reciprocity.

At the financial institution I used to work at they qualified you at an interest only payment, assuming a maxed our line amount, and the interest rate used in the qualification process is  +5% of what the actual rate will be.This could be higher than a traditional mortgage payment in a lot of cases.

For instance, FHA guidelines are very strict and restrictive when it comes to using departing-residence rental income to qualify for a new FHA loan (such as the 100-mile rule).

They have "minimum" credit scores to qualify for a loan, but the higher the score doesn't change the interest rate.