It just so happens that none of the individual expenses exceeded the $2,500 rule even though the aggregate cost to construct a set of cabinets (example) may exceed this threshold.Since 1.263(a)-(f)(6) specifies intent rather than the end result (Unless you think (6)(i) would apply), since the intent of the taxpayer was not to manipulate this election for a tax benefit, my assumption is that they would be able to expense all of the items normally.Just looking for confirmation as I'm pretty confident my understanding of the regulation is correct.

Looking for some advice on how to minimize taxes in CA.

Is there an efficient way to find the neighborhoods that have the least taxes?

Taxes are 10k/yr 2.

I have a large amount of passive activity losses on my tax returns which will carry forward (not REPS so can't offset my W2 income) I don't know anyone who retired early/quit W2 at the age of 40 from their stock portfolio.

It's a great way to push the capital gains tax down the road if you decide to sell and purchase another investment. 

There are some tax implications etc as well. 4.

So, reducing the income tax is always a plus. 

Your cash flow, is it all net after income taxes?

To me interest rate is just another expense like insurance and tax.