The adjusted cost basis is the number that is used to compute your total taxable gain, which is then broken down into capital gain and depreciation recapture. 

You can reference IRS publication 598 for more details on the topic.You can deduct the percentage of interest payments on the note and other operating expenses from the taxable amount.How will the land produce income?  

This is still a good deal because the overall taxable rental profit will be reduced and you may not owe any taxes due to depreciation and other expenses.In summary, I would think that you are entitled to writing off 3/4 of your property's expenses from your property's rental income (not your other active income).

@Tim Simmons you’re happy to make less profit because your taxable income is smaller?

Is $100k your actual taxable gain or cash at close? 

Depending on the size of the property and your other taxable circumstances, a CPA should pay for themselves with the tax savings.  

Transferring the property to/from is generally not a taxable transaction.

There are specific rules and elections involved, it's not a matter of whim nor preference.Don't forget to pick up the business CC rewards as taxable income.Don't forget to issue 1099s to the contractors if applicable.Your CPA should be able to help you with all of this.

The house itself ages and things like kitchens and roofs have useful lives so you're allowed to deduct that from your taxable income.  

For example, you may transfer an apartment property worth $800,000 with an accumulated taxable gain of $400,000.