I purchased one fourplex in CA last year with one partner. Meanwhile, I created one LLC and business bank account to pay property tax, mortgage and day-to-day operating cost. Per lender's requirement, the title is hel...

Sadly, we lost my mother-in-law to cancer two years ago, and my father-in-law has since realized he no longer wants to live there, though he remains emotionally attached.The home is in its final stages of construction, needing only finish work and a kitchen remodel to be rentable.

To go a bit further into what Dmitriy mentioned, since your IRA earns the income the tax treatment is specific to your IRA.

It gets the best treatment.  

Im basically looking for advice on how i can save as much on taxes as possible.Part of the property is your primary residence, which does not qualify for 1031 Exchange treatment.

., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

In doing so, bear in mind that the cost and admin of a corporation is higher and that the tax treatment is different:1.

Time became of essence because my wife was diagnosed with stage 4 cancer in September.

However, you do not need to file Form 8832 because IRS rules allow a married couple in a community property state to elect disregarded entity treatment by default.

However, the tax treatment differs between short-term and long-term rentals:Short-Term Rentals (STRs): If you materially participate (work 100+ hours and more than anyone else on the property), you may be able to offset rental deductions against W-2 or other active income, offering greater tax benefits.Long-Term Rentals (LTRs): If your AGI exceeds $100K, your rental losses may be limited, unless you qualify as a Real Estate Professional (REPS).If you plan to expand your rental portfolio, consider an LLC later for liability protection and easier management.