I have a buyer looking to purchase investment property via 1031 exchange in Nevada (income tax free state). Can a California buyer avoid paying income tax on rental income in Nevada or report and pay in California?

@Aaron Lancaster some notes on your rehab estimates:The roach treatment sounds cheap, even for a single treatment. repeat treatments are often required as well.You could probably find a guy to do the tree work a bit cheaper, depending on the extent.The toilet and mold combo sounds high.

But like a syndication they have a sponsor and administrator who functions as property manager of the NNN property.Both of these qualify for 1031 treatment because the exchanger is actually purchasing a deeded interest in real estate. 

The pre-cut laminate slabs are great, but if this treatment holds up with tenants I will absolutely use the epoxy again.

Places with good schools and easy access to job centers, places where people who can't afford (or just don't want) to own yet are still willing to settle down for a bit until they can.

Rule #2 Rules are meant to be broken.For what it is worth I think the guru's selling LLCs have greatly overstated their value to an investor and are charging outrageous trumped up fees and the only folks making money with them are the shady folks marketing them 24/7.After examining the "Tax Cuts and Jobs Act" (Trump Tax Cuts) the most beneficial income tax treatment starting in 2018 is the "S Type Corporation".

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $112,000

Cash invested: $23,000

What made you interested in investing in this type of deal?
Great neighb...

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $112,000

Cash invested: $23,000

Single family home with a mid century vibe, in great shape and in a great area of T...

@Min LiangIn addition to what @Michael Plaks said, it should be noted that the $25k "Mom & Pop" passive activity loss allowance is only available for rental real estate activities with 'active participation'.As long as you actively participate in the rental activity and your AGI is within thresholds, most long-term rentals will be eligible.AirBnBs, VRBOs, etc with an 'average period of customer use' of 7 days or less are deemed to not be rental activities for passive activity loss treatment. 

@Nicholas Olson Do you have a local or community mediation center?