There are plenty of accountants on here that specialize in real estate taxation and the STR loophole.

Dennis, I recommend that you hire a tax accountant that specializes in real estate taxation.

Until then, you must initiate the contact from your end.Here is some introduction to STR taxation:  https://www.biggerpockets.com/forums/51/topics/1122635-the-s...

Include a buyout clause allowing you to transition to sole ownership after two years, based on a pre-determined valuation formula or market value.Use an LLC to hold the property for liability protection and pass-through taxation, ensuring both partners benefit from depreciation to offset rental income.

No hard asset, no insurance and no taxation.)

I almost feel like no taxes now for 5 years and then capital gains tax at the end of 5 years is too good to be true, especially on a note fund.I will discuss with my tax team to ensure this is correct and to get a better understanding of how this specifically affects my situation (with other passive income/losses, etc.).

@Tim Rogers Do you have a CPA that specializes in real estate taxation?

A standard C Corp is subject to double taxation, depreciation is not pass through, transferring  property out of a corporation is a taxable event. 

You can do as many exchanges as you want until you decide to cash out or simply die with the tax.

If you have referrals for professionals who specialize in California real estate taxation (I’m based in Sacramento/Central Valley), I’d definitely appreciate it.