When a taxpayer materially or actively participates in the management of the rental activity, the income may qualify as non-passive, allowing losses to offset other forms of active income, such as W-2 wages.

I do not underestimate the US governments ability to keep kicking the can down the road but I do estimate that the average American tax payer will not be able to keep up for this ride, especially with unemployment skyrocketing.

Consistentlyblate property tax payments.  5.  

For example, after the Banking collapse of 2008 no one went to jail or was held responsible for the billions (maybe trillions) of dollars that debacle cost and the taxpayers were left to bail the system out. 

I know the Sikariluxe.com fund is actually now open to taxpayers. 

Trade or business activities are activities, other than rental activities or activities that are treated under § 1.469-1T(e)(3)(vi)(B) as incidental to an activity of holding property for investment, that—(i) Involve the conduct of a trade or business (within the meaning of section 162);(ii) Are conducted in anticipation of the commencement of a trade or business; or(iii) Involve research or experimental expenditures that are deductible under section 174 (or would be deductible if the taxpayer adopted the method described in section 174(a)).

.- Property used in an activity conducted by a partnership, S corporation, or joint venture in which the taxpayer holds an interest.

Under Section 1031 of the IRC, taxpayers may defer recognition of gain or loss when exchanging like-kind property.

.• Refinance replacement property: Even if you must park money for Oregon’s bill, you might exchange into a higher-value property, then refinance after closing to pull cash out tax-free to cover the tax payment.• Installment sale / structured sale: Instead of a straight sale, you could consider structuring payments to spread out gains recognition, but this complicates a 1031 and needs expert guidance.• Cost segregation on new property: If you go out of state and accept Oregon’s clawback, a cost seg with bonus depreciation on the new property could generate large deductions to offset federal (and possibly Oregon-source) income, freeing up cash to pay the tax.• Charitable strategies: A charitable remainder trust (CRT) can sometimes help shelter a portion of gains, but that’s a more advanced estate/tax play.Tax angle:• The new One Big Beautiful Bill (OBBA) in 2025 tightened tracking and reporting of state-source gains, so Oregon’s enforcement is stricter now.In short, if you move your exchange out of Oregon, you likely can’t avoid the $34K entirely, but you can plan around it with refinancing, cost seg, or advanced trust strategies.

Again, there’s a lot here, so it would be best to walk through all the specific facts and circumstances not readily apparent in your post with your tax professional, as this requires good documentation and not “ballpark guesstimates,” as noted by the courts.From ATG100 hours and more than anyone else: The taxpayer must not only prove he worked more than 100 hours, but more than anyone else.