@Bao Vu The purchase price and related expenses from 2023 should be included in the cost basis for the flip sold in 2024, reducing your taxable gain.

Once you sell your old property and use a QI, the exchange will be complete and your capital gains will be deferred.

Currently working to gain capital as I educate myself and seek knowledge through every possible avenue.

However, these costs can often be added to your property's basis, which helps reduce capital gains tax when you sell the home.Once the property is officially a short-term rental, subsequent repairs and maintenance would likely qualify as deductible expenses. 

Plus for its high cash flow potential, utilizing a 1031 exchange to reinvest gains effectively made this experiment a relatively low risk for me.

To gain the experience I need and to see how the hospitality world works for meI plan to continue airbnb arbritage for a bit until I can own my own property in the area but that will be some time from now as the average home price in the area is 600k+ I'd need to save atleast 15% (10% for down payment 5% for closing costs).

By househacking a multifamily, you'll gain the same acquisition experience as you would purchasing a condo/co-op.

Would like to sell and capture gained equity, also cash flow is not great and the house needs more work.

My good experiences come from the knowledge I've gained and the initial support I received from RTR.

The accountant said that NJ allows one to “adjust” the basis in the property to the extent no benefit was obtained from depreciation...you do not get to take losses from real estate to offset gains on sales of property in NJ.