I did a $60k renovation on a 'non-dog' in California, wiping out most of the taxable profits, increasing the rent by $800 a month AND not ever having to renovate the property again in my lifetime.  ;-)

Realized gain is 0.7.As far as I know, taxable gain is the difference between FMV of relinquished property and replacement property to the extent of the realized gain.

From her perspective, if she wants to sell, and if the taxable sale would be taxed at 15% capital gains rate, she might be better off selling for lump sum cash.

The corporation will be a taxable entity, but any dividends issued to the retirement plan shares would be tax-sheltered.

It is actually safer from a taxable boot perspective is you do the cash out refinance after the 1031 Exchange as opposed to before it.

I'm seeing conflicting information online.As a "dealer in real estate", my homes are treated as inventory.Because they are treated as inventory, is the purchase of a home deductible in the taxable year it was purchased ?

@Gidon EichhornWelcome to biggerpockets.You pay tax on your "taxable income"Taxable income includes items such as W-2 Income, Net rental Income, Standard/itemized deduction among other things.

In addition, if it's your primary home, it don't believe you can depreciate it.Even if you could do it, you would lose one of the largest benefits of a primary residence, the $250,000 non taxable gain when you sell.

By accelerating your depreciation schedules, you reduce your taxable income which in turn increases your operating cash flow.

Loans are not taxable unless they are written off by the lender as a bad debt and the lender issue 1098 to borrower.