The tax code allows for the raising of the cost basis to the higher price, minimizing the capital gains taxes owed if the asset is sold later.

The ultimate goal is to reduce the likelihood of capital calls, while at the same time streamlining work for the bookkeeping team.Example: We're buying a 40-unit apartment complex (in Michigan) with an annual property tax bill in year 1 of approximately $50,000.

The laws also make you register and pay hotel occupancy taxes, with some serious penalties if you try to not do either.Also, Airbnb doesn't work everywhere here.

You're completely deferring all tax on gain. 

But now I am being told that if I do a refi to pay them off I will lose the 'prop 19' tax basis on the portion of the property I buy from them, even if I move into it as my primary residence. 

@Tammy Muller here are two great threads that cover the accounting software options and feedback thoroughly: BP -> Quickbooks or something elseBP -> Fav bookkeeping/accounting softwareThey don't mention either of these options, but that might be because RentalHero &  REI Hub are full-blown property management software, and Quickbooks Online, Digb, and Stessa are accounting/tax software focused on real estate investors.

DSCR loans are underwritten based on your credit, liquidity, and the rent you will receive vs the principal, interest taxes, and insurance.

I use them for 1040 prep, but that's it.Separately,  I have a Japanese CPA who helps with my J-taxes. 

As a newbie, my first question is around how to start out.What is the best type of business for Real Estate Investing to get the best tax break?

When you sell to your new entity vesting your title insurance is no longer valid, and you owe transfer taxes.