If you sell those, gains would generally be taxable, and depreciation recapture may also apply if any are held as rentals.I’d happy to walk you through how to structure it most efficiently when you're ready.Feel free to e-mail me or reach out anytime.

Here’s a general example:If you own rental properties and you’re actively involved in managing them, you may be able to use losses from those activities to reduce your taxable active income—like wages or business earnings.Many people aren’t aware this is possible because the rules depend on how involved you are in those activities.Hope this helps!

A client of ours bought a ranch to use as a short term rental property in 2021 for $1.7 million.After our engineers did a virtual site visit, they were able to assign a value of $347,000 into either 5-7-15 year assets that were eligible for depreciation.In 2021, the bonus depreciation amount that you could take was 100%.This means that the owner could immediately deduct the full amount of eligible property in the year it was placed in service, rather than depreciating it over time.With that in mind, he took the full $347K deduction in his first year of ownership to offset taxable income from rentals.This was roughly ~20% of his purchase price.It was a big win for him.As a reminder, the bonus depreciation rate in 2025 is back to 100%, it's still an incredibly valuable tool.

I mostly do rehabs so I have always been a buyer of distressed, cheaper notes where the buyer AND the property need help. 

When you sell it on terms, each payment you collect typically gets split between principal (which just lowers your note balance) and interest (which is the taxable part).I’m not an expert on the accounting side, but I do try to stay open to learning more about these things as they come up, especially as I dig deeper into different parts of the land business.One tool that helps is a simple amortization calculator like Bankrate, it shows how much of each payment is interest vs principal.Also, IRS Publication 537 is a solid starting point for understanding how installment sales get reported.If nothing else, keeping clean notes and setting up a system early makes tax season way less painful and eventually bringing in a CPA who “gets” land notes is well worth it.Here's various resources that could be useful to you...Books (For Foundational Knowledge) 1.

Investing in tax-advantaged assets like municipal bonds or qualified opportunity zones can also reduce taxable income.Timing is critical—the sooner you implement these strategies, the more value they deliver.

Solid B class suburban area15068: The river towns (New Kensington and Arnold) are going to be cheaper than the rest of the zip code which is more suburbs.

I also have $50K in a taxable brokerage account and another $20K in an HSA which will continue to grow.The main part of my portfolio I have been working to grow is my real estate portfolio.

$1,800 is actually on the cheaper side for a return with that level of complexity—8 properties, a partnership K-1, multiple investment statements, a W-2, and in-person review time.

Even if the passive losses get suspended, you’re reducing your current taxable rental income and deferring taxes, which gives you the benefit of time value of money.