However, you can defer taxes under §1033 involuntary conversion if you elect to reinvest the proceeds into a similar rental property within two years (three years if the government condemns the property or threatens to do so, and four years for a principal residence in a federally declared disaster area).To reduce taxable gain, consider:Electing §1033 treatment and reinvesting the full $300K into a new rental property to defer taxes completely.Partial reinvestment, where only the portion not reinvested is taxable.Properly documenting all replacement costs and property details to ensure IRS compliance.Using cost segregation on the new property to accelerate depreciation and offset future taxable income.Since the §1033 election must be made, consult a tax professional to ensure compliance and maximize deferral benefits.This post does not create a CPA-Client relationship.

Consult a tax professional to optimize deductions and explore strategies like Real Estate Professional Status or short-term rental loopholes to apply depreciation to non-passive income.This post does not create a CPA-Client relationship.

The last post on this topic I see is from about seven years ago... so figured I would start fresh. 

Hi everyone,It has been awhile since I have posted on here, but am excited to get back in!

A little background: Feel free to scroll down for the main reason of this post...I started out in 2011 trying everything to make my start in real estate but was not successful until 2015 when we purchased our first duplex in Fresno CA.

I found and joined those DU groups on FB (but I'm having trouble being able to post there).

If you do it all above board, you would pay taxes on the rental income received and your daughter would be using post-tax dollars to pay rent which isn't the most efficient.

@Jaycee Greene I noticed this after I had already posted.

@Jay Hinrichs you are correct and that is the difference in 41,888 post and my 1,444 post. :) 

Contacted them on Feb 11th. 4 days later still no response.They don't even respond to post on BP.