Tennessee’s rules and your net-worth gap are exactly why you want the legal and tax pieces talking to each other instead of using a one-size-fits-all S-corp answer.If you’d like, I can outline a “model structures” I use for couples in similar situations (pros/cons, how income and liability flow, etc.) so you have something concrete to discuss with your local attorney and CPA.

You or your CPA could allocate that $300k anyway you want.

Since bonus depreciation was 100% back then, combining a cost seg study with a 3115 adjustment could give you a big first-year deduction boost.Just make sure the study is done by a qualified firm and reviewed by a CPA who understands how to apply it.

I do not know CA law well, so you'll want to talk to a CA CPA, but I know in FL you run into transfer tax issues.

IRC 469(c)(7)(B) and Publication 925 back this up, stating that the active participation of just one spouse can turn the entire rental activity non-passive.It sounds like your CPA may have misunderstood this rule.

While you search for CPAs, I think a general principle is the more you learn the easier it will be to interface with your CPA and you will make a better choice on who you go with.

Talk to your CPA about 1) Can one owner claim all the depreciation?

My cpa is estimating around 50k in capital gains.

I work in tax (CPA).

*A few small habits — separate accounts, clean books, and talking to your CPA before year-end — can make a massive difference.Taxes aren’t about loopholes or tricks.They’re about getting organized early and using the rules the way they were written.Curious — when do you usually meet with your CPA?