They lowered the “taxable value” by 40-50% and then raised the tax rate about 35-45% lowering everyone’s taxes that year.

There are many tax accountants on Bigger Pockets that can help you with your situation. 

You’ll pay more for tax prep, more for record keeping, more for financing but what will you get?

Hence the lot on which the house resided was taxed at a 45% discount based on actual value, while the tennis lot was taxed at about 4 times what it should have been by value. 

The tax paid from your lending proceeds should be the equivalent of your tax rate I would think.

Thats $7700 a year NOT including my accountant/Tax prep. 

if it is unsecured loan that is the consequence, you lose they entire thing. as far as tax write off, sorry but none.

This isn’t/wasn’t a loophole - just tax policy. 

., mortgage interest, taxes, repairs, depreciation) on Schedule E starting when the property is placed in service.

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.