If you want to defer all of your taxable gain, you must acquire one or more replacement properties that have a total purchase price that is equal to or greater than your net sale price of your relinquished property.

If you have enough Cash Flow to live the way you want, why do you want to make more in taxable income rather than increase in Equity which is not taxed until you sell...

Below are some methods I have used in the past with success:-VA loans (understand the second use, 2nd teir, and re-establishing eligibility)-remember BAH is non-taxable income (gross up when speaking to lenders and ALWAYS purchase when you move)-LLCs are great liability protection, but they are per state (plan on moving to another state?)

The questions are: What is the actual taxable profit in this deal?

When your taxable income is a negative number, flips become tax free.What if your tenant does normal wear and tear or worse to your house?

Think of it this way, you are making an investment with $100k of your money and getting a 5% (taxable) return.  

Rental income, less expenses, less interest, less depreciation is your taxable rental income.

Depreciation is still $727/year, first year interest is $1394, leaving $879 in taxable income.

I'm not a tax expert, but as I understand it, the depreciation reduces the cost basis, and the IRS sees the taxable gain as sale price less the cost basis.

I want to sell several this year so that I will show a healthy taxable income so that I can get loans as I have to pay cash right now.