All the benefits of living near CA but no state income tax.

Thanks to the Cost Segregation Study, the property investors accelerated the depreciation that the first year depreciation was approximately $182,900.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

if you can manage to live in it and rehab it over time, then if you live there 2 of the last 5 years prior to selling it the gains are tax free up to a certain amount. 

It is very hard to find a lender that will help include this income prior to it being on a tax return for 2 years.

You may find buying what might appear to be a lesser cash on cash return rental asset that's held long enough to take advantage of more efficient long term capital gains tax treatment, while paired with the benefits of the depreciation might yield a better after tax return than flipping a home.

(we once paid $1800 to a big name plumber in town to replace 6in of plastic drainpipe under a stand alone tub). 3) We need better understanding of the legal structure (LLC) that we should have in place for our property, and also a tax advisor (CPA) to help with understanding deductions.

But selling today might mean you get taxed on 100% of your Cap Gains.

Can I deduct the closing cost in my rental property taxes for 2023.

Short term capital gains is your ordinary income tax rate and long-term capital gains where you hold the property a year or longer is considered long-term capital gains is in as taxed a lower rate.  

However, the tax basis will be a low $770,000.