Apparently, she doesnt want to sell the house because of taxable gains. 

However- I would never rack up extra expenses just to reduce your taxable income. 

., invest in a QOF), then you have 180-days from the end of the pass-through entity's taxable year to invest your allocable share of the capital gain amount.

Don't worry about the tax shield concept too much, it's one of the ideas underlying how leverage can be used (because interest is deducted before taxes are calculated so the debt results in less of the gross return being taxable) but it's a bit of a tangent. 

It creates a whole spider web of potentially taxable events for no reason. 

At that point, your prior year losses will net against the profits to bring your taxable income for the rentals back down to $0.3. 

You need to be looking at your effective tax rate and tax liability, adjusted for any material taxable income changes year-over-year. 

Where the Corp does not distribute its income in the year of sale, the Canadian investors will still be required to include the income earned by the Corp in their taxable income under the foreign accrual property income (“FAPI”) rules.

@Loic AssobmoNot all properties produce a tax loss.Properties that are high cash flow positive tend to have taxable income (instead of loss) even after factoring in depreciation as they have high rent to value ratios."

On the other hand, apartment syndications have tax advantages such as depreciation that lower my taxable income brackets.