The $100,000 cost of the original structure in 2021 would not be depreciated further because it was demolished.So, for tax purposes, you would only depreciate the cost associated with the new construction, not the original structure that was demolished.

I think family could have purchased for a small percentage under appraisal, even if balance owed was higher, if they wanted to keep it then sell it themselves.

I use Innago as a management program which allows different taxable entities for the rents, which would assist when it comes tax season.

Look at lists of properties that are on the Sheriff Sale, and Tax Sales, as some of those could have assumable mortgages, and provide a list of potential assumable mortgages, where the owners are potentially losing their properties.David KrulacBigger Pockets Podcast guest #82  

These are reported and "retained" on IRS Form 8582.Of course, if you are unsure or would like additional guidance in determining what might fit your specific situation, please reach out to a CPA/Tax Professional who may be able to assist.

I am in search of an efficient system  to track my rental properties regarding income and expenses to make it easy for my accountant at tax time.

Taxes in these zip codes might be higher but they're great long term holds with steady appreciation.

You need to understand the tax regulations on both sides of the boarder.

Hey Russel,Admittedly, I do not know BAM; I am curious about what is driving your interest in/decision to invest whether its a preferred return or more back end equity, or just tax advantages.The market has definitely put some operators' projects in distress, and it is very unfortunate, but the flip side is that other operators are able to use stabilized financing to acquire these distressed assets.Our operator partners are seeing an almost 20% discount as they are acquiring assets today.

See a tax advisor