Quote from @Ian Ippolito: Quote from @Michael Plaks: Quote from @Ian Ippolito: Quote from @Rud Sev: 3) Unless you're doing a 1031 exchange  at the end or similar tax structure to defer taxes, you will have to *pay back* all that depreciation benefit at the end (on sale...which for you is in 5 years)  via depreciation recapture.

You can use it as a downpayment on a property over $450k and use leverage tax free.

Then there’s this glorious tax season where you realize how many things you get to deduct that others can’t, while sheltering your income with depreciation, and earning tax free income with appreciation.

Right now, I do have the "REALTOR" status but wondering if it make sense to keep paying the $800/yr to keep the status?

Anyone using for all or part of your tax needs?

I am seeking mentors and or guides to help me invest in business that can eventually help offset W2 income tax.

Sometimes it makes sense to pay the gains if there are not adequate replacements.

However , properties taxes are due like roughly 12k for the two lots. 

You will have to pay higher personal income tax rate, versus waitingtill after one year for lower Capital gain tax rates.

If you think ahead, you can minimize recapture with the right tax planning.So what is recapture?