However, as a cpa, I would typically advise my clients, especially on higher priced properties to have a field visit.

To benefit from long-term capital gains rates, you’ll need to hold the property at least one year after acquiring title.This post does not create a CPA-Client relationship.

Run a tax projection with a real estate CPA to make the best strategic move.This post does not create a CPA-Client relationship.

Also, I get confused with researching online and what my CPA told me.

Work closely with a 1031-experienced CPA and qualified intermediary to structure your exchange for maximum tax efficiency and compliance.This post does not create a CPA-Client relationship.

Just export the Schedule E report and hand it over to your CPA. 

You will also want to consult with your CPA, and a local real estate attorney.If the property is in your personal name, then you can set up a Single Member LLC that has a Disregarded Tax Election.That way, the income generated by the Single Member LLC will pass through to you. 

Hey Joe, I really resonate with your post — I’m a CPA and real estate investor myself, and I’ve been through multiple BRRRRs.

Most investors I know start by buying in their personal name to get better mortgage rates and then layer on an insurance policy for asset protection.Before spending thousands on a setup, just have a conversation with your CPA.

That means:Depreciation recapture under IRC §1245 is triggered at the time of sale.You’ll pay ordinary income tax (not capital gains) on the depreciation taken on these components, including bonus depreciation.Even if the replacement property has similar assets, the IRS treats them as newly acquired, so the prior depreciation is recaptured and taxed.Tax mitigation strategies:New cost segregation on the replacement property to front-load fresh depreciation that can offset income (especially useful if you qualify for REPS or STR material participation).Strategically use suspended passive losses or time the sale during a lower-income year to reduce your effective tax rate on the recapture.Consider installment sale or partial exchange structure, if applicable, to spread gain.Let us know if you'd like our downloadable 1031 exchange, we can send that over to help you build out your roadmap.This post does not create a CPA-Client relationship.