However, if you don't have "earned income" (as opposed to capital gains) then you cannot contribute to a Traditional IRA or HSA and deduct it from your taxable income.

The interest expense on the loan would lower the taxable income on your investment.

But you would also still shelter the other $155K of taxable gain. 

Remember that assignment of an agreement of sale is a taxable event in Pennsylvania.

Choose a tax year accounting periodBusinesses typically figure their taxable income based on a tax year of 12 consecutive months.

This would not be taxable event so no tax liability to you.

Plus, you can have positive cash flow but a negative taxable income.

If your property was worth $250k, you have would generally have to spend $250k or part of the exchange will be taxable. 

If you qualify as a real estate professional and have enough long term buy and holds, your expenses and depreciation would likely show you having “zero” taxable income.If you own one 300k apartment building or house that’s a lot of depreciation, unless they’ve changed this part of the code to.No tax advice given

For a business owner with $100,000 taxable annual income, the net tax savings for using an S Corporation instead of an LLC in taxes paid every year can be as high as $7,500.Holding PropertiesWhen holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.