For owner-occupied homes – including up to five acres of surrounding land – the assessed (or taxable) value is 4% of fair market value, and no school district taxes may be added to the base millage rate.

However, you can take taxable distributions from the IRA if you need the funds. 2.

@Matt Lockwood: (I am not a CPA) Without getting into the technical jargon, one of the easiest ways to described difference between W-2 and 1099 is:1099: Gross Income - Expenses (Business related) = Net Taxable Income (Income on which you pay taxes)W-2: Gross Income (also the Taxable Income) - Taxes = Net Income and then you have ExpensesWork with a qualified and knowledgeable professional who can guide you through what is acceptable deductible expenses in REI.

Taxable Value 75,830Purchase 50,867Tax 1986.70Vacancy 10%Repairs 5%Capital Expenditures 5%Property Management Fee 10 %Investment results: Purchase Price: $50,867.00 Purchase Closing Costs: $3,000.00 Estimated Repairs: $0.00 Total Project Cost: $53,867.00 After Repair Value: $70,000.00 Down Payment: $10,173.40 Loan Amount: $40,694.00 Loan Points: $0.00 Loan Fees: Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $218.45 Total Cash Needed By Borrower: $13,173.00 Monthly Income: $700.00 Monthly Expenses: $643.95 Monthly Cashflow: $56.05 Pro Forma Cap Rate: 4.71% NOI: $3,294.00 Total Cash Needed: $13,173.00 Cash on Cash ROI: 5.11% Purchase Cap Rate: 6.48% Really, I know it’s not a great deal, but it’s a property that I can buy into for cheap.

Every dollar out the IRS will consider a dollar of gain and it will be taxable until you have taken out the full amount of your gain.In your example if you had 150K in profit then you would pay tax on the 100K and still shelter the other 50K of profit.  

When you file your taxes you apply your sec 121 exclusion to the 500K in boot that would normally have been taxable.  

If you are early in your career, you should consider a Roth, because then, while you're investing post-tax funds, investment gains are not taxable.

This can help reduce risk and volatility by preventing overexposure to a single asset class.6) Depreciation Schedule: resets when the property is purchased in partnership with a DST7) At the close of escrow, move funds outside of taxable estate to avoid the 40% estate tax on amounts over $11M single or $22M married couple.

That's called "boot" (don't ask me why) and would be taxable.

Really, in the first year you have a taxable event.