Additionally, buy-and-hold investors can take advantage of tax benefits, such as depreciation deductions, to reduce their tax liability.House Hacking StrategyHouse hacking is a real estate investment strategy that involves purchasing a multifamily property and living in one unit while renting out the others.

This approach would not yield significant immediate cash flow but could lead to equity growth, tax deductions, and property appreciation over time.

I know there are certain liability protections, but I'm more interested in the tax implications.

If you qualify, it is a nice option.In the IRA format, you need to start with an IRA held by a non-traditional custodian, then have the IRA make a single investment into either an LLC or Trust to obtain checkbook control over the IRA.There are a few firms that specialize in establishing a checkbook IRA trust.If you are investing in non-liability risk assets like funds and syndications, there is a clear advantage to the trust as it is not considered a business and therefore not under the purview of the CA Franchise Tax Board.If you will be investing in rental property, the limited liability protections offered by a LLC may outweigh the cost and headache of California filings. 

City permit means nothing, it's just a tax.

Does time taking care of (mowing/landscaping) and managing (keeping records, paying HOA dues, paying taxes) my vacant parcels count towards my 750 hours of being a real estate professional?

Franklin County is doing a mass re-appraisal process for property taxes in 2023.

His house has high capital gains taxes (bought it 1983) and low property 19 (CA) tax base.

He is also wondering if the taxes would be less if he just sells the property outright.

I understand you can look at Zillow and leverage public county tax databases to find semi-accurate property tax numbers with comparables.