I want to minimize my taxable income for the year.

Capitalize renovation costs to increase the property’s basis and reduce future taxable gains.

Leftover funds not reinvested are taxable as "boot."

Hi Ryan,Typically construction financing isn't based on your taxable income and rather more contingent on your experience, FICO and the deal itself.

If you did, you could take advantage of some unique strategies, like renting it out while traveling (as long as it’s for 14 days or less) and having that rental income be completely non-taxable.

You’d also make all future capital gains at least partially taxable instead of tax exempt by converting your primary to a rental.

That may not apply to you, as a financial professional, but I thought I would share the story.Obiously you could re-lever your portfolio to bring the ROE back up, but then you have to place those borrowed funds somewhere that nets a high enough return that the portfolio is ahead, given the drag of the interest and any transaction fees.    

@Will Almand A cost segregation (cost seg) study can accelerate depreciation on your properties, reducing taxable income by reclassifying components (e.g., appliances, HVAC) into shorter-lived categories.

The loss created by section 179 is limited to your total net taxable income amount from all "active" business income you have, plus any W-2 income. 

But once they give it to you, you inherit their cost basis and have a taxable gain.