- Run a cost segregation study on this property in 2024 and you might have $100k on line 18...Without diving too deep on this post - If you run this scenario as a real estate professional while materially participating in the property, You'll be able to reduce your's and your spouses taxable income that year... 

The insurance payout also impacts your taxable gain.

Also prevented us from making wrong statements on our part which would have reduced the claim.3.  

They lowered the “taxable value” by 40-50% and then raised the tax rate about 35-45% lowering everyone’s taxes that year.

The result is an immediate tax benefit in the year of disposition, reducing taxable income.Death Step-Up Basis: (bummer, you have to die for this benefit to kick in, but...) 

This 1031 Exchange Calculator can help you model out the taxable proceeds based on various situations. 

Additionally, many states offer property tax exemptions, significantly reducing expenses.

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

Is her goal to be nice and provide some of the gains or reduce her taxes by trying to split income between her and her ex?

My agent is saying that we are unable to split the contract that way (or reduce the purchase price), so I'm trying to figure out options.