Total, Adjusted Gross, or Taxable Income?

What would be considered my taxable basis for depreciation if no actual money changes hands?

If the property is paid off as in your example, that means all that income is taxable income after the few expenses.

If that happens the amount over your stock basis is taxable.

If you borrow from your IRA and make the same real estate investment then the gains will be considered taxable income and the increase may bump you up to a higher tax bracket.

. • A Tax Deduction is a dollar-for-dollar decrease in the amount on which you are being taxed, ie your taxable income.If you owed $5,000 to the IRS next April 15 but you had a $2,000 tax deduction (for mortgage interest, for example) you would only have to write the IRS a check for $4,300 (assuming a 35% tax rate). 

I have been through this exact same thing and so long as there is no beneficial taxable interest arising from the transfer, it is treated as a transfer between related parties.

Would this structure not reduce my taxable income by $53k while allowing me to invest $53k into real estate this year?

I am in need of a private lender refinance on my $600k house. I owe about $500k. It’s a difficult situation because the other person on the loan and myself are splitting up and I do not have the income (on paper) to q...

I'm also starting to invest in taxable accounts and hope to use THAT (non-retirement money) for REI once I build it up a bit more.