15 Tax Benefits Every Real Estate Investor Should Know

Real estate is the most tax-advantaged asset class available to individual investors in the United States. No other investment — not stocks, not bonds, not crypto — offers the combination of current deductions, deferred gains, and outright tax elimination that real estate provides. The Internal Revenue Code contains dozens of provisions that specifically benefit property owners, and understanding these provisions is the difference between paying full freight on your taxes and legally reducing your bill by tens of thousands of dollars per year.

This guide covers 15 distinct tax benefits, each with a specific dollar example showing actual tax savings. These benefits are available to investors at every level, from a first-time landlord with a single rental property to a high-net-worth investor deploying capital through syndications and self-directed retirement accounts.

Important: Tax law is complex and changes regularly. This guide is based on the Internal Revenue Code as of the 2025 tax year. Always consult a qualified CPA or tax professional for advice specific to your situation.

1. Depreciation (IRC §167, §168)

Depreciation is the foundation of real estate tax strategy. It allows you to deduct the cost of a building over its “useful life” as defined by the IRS, even though the property may actually be appreciating in market value. Residential rental property is depreciated over 27.5 years using the straight-line method. Commercial property depreciates over 39 years.

Dollar example: You purchase a rental property for $250,000. The land is valued at $50,000 (20%), leaving a depreciable building basis of $200,000. Annual depreciation: $200,000 ÷ 27.5 = $7,273 per year. At a 24% marginal tax rate, this one deduction saves you $1,746 in federal taxes annually— without spending a single dollar. Over 27.5 years, you deduct the entire $200,000 building cost.

Depreciation is a “phantom” expense — it reduces your taxable income without requiring any cash outflow. This is why many rental property investors report negative taxable income on their properties even while collecting positive cash flow every month.

2. Cost Segregation (IRC §168)

Cost segregation takes standard depreciation and supercharges it. A cost segregation study, conducted by a qualified engineering firm, reclassifies certain building components from the default 27.5-year schedule into shorter recovery periods: 5-year property (appliances, carpeting, certain fixtures), 7-year property (office furniture, security systems), and 15-year property (parking lots, landscaping, fencing). These shorter-lived assets can also qualify for bonus depreciation under IRC §168(k).

Dollar example: You buy a $600,000 apartment building (building value after subtracting land). Without cost segregation, your annual depreciation is $600,000 ÷ 27.5 = $21,818. A cost segregation study reclassifies 25% of the building ($150,000) into 5-, 7-, and 15-year property. With 20% bonus depreciation (2026 rate), you can deduct approximately $30,000 of the reclassified amount in year one as bonus depreciation, plus accelerated MACRS depreciation on the remainder. Your first-year depreciation jumps from $21,818 to approximately $52,000 — more than doubling your deduction. At a 32% marginal rate, the additional deduction saves you roughly $9,658 in extra tax savings in year one.

Cost segregation is most cost-effective on properties worth $300,000 or more (building value). Studies typically cost $3,000–$15,000 depending on property size and type. See our complete Cost Segregation Guide for details.

3. The $25,000 Passive Activity Loss Allowance (IRC §469(i))

Rental income is classified as “passive income” under the tax code. Normally, passive losses (such as depreciation-generated losses from your rental) can only offset other passive income. But IRC §469(i) creates a special exception for rental real estate: if you “actively participate” in your rental activity (make management decisions, approve tenants, approve expenses) and your adjusted gross income (AGI) is below $150,000, you can deduct up to $25,000 of rental losses against your non-passive income (W-2 wages, business income, etc.).

Dollar example: You earn $110,000 from your W-2 job. Your rental property generates $12,000 in rent but has $8,000 in operating expenses, $5,000 in mortgage interest, and $7,273 in depreciation. Net rental loss: $12,000 − $8,000 − $5,000 − $7,273 = ($8,273) loss. Because your AGI is under $150,000 and you actively participate, you can deduct the full $8,273 against your W-2 income. At a 24% rate, this saves you $1,986 in federal taxes.

The $25,000 allowance phases out by $1 for every $2 your AGI exceeds $100,000, disappearing entirely at $150,000 AGI. At $120,000 AGI, your allowance drops to $15,000. See our Passive Activity Loss Rules guide for the full phaseout table and strategies.

4. Real Estate Professional Status (IRC §469(c)(7))

Real Estate Professional Status (REPS) is the single most powerful tax designation available to real estate investors. If you qualify, all of your rental activities can be classified as non-passive, which means your rental losses — including depreciation — can offset any income without limitation. No $25,000 cap. No AGI phaseout. Unlimited deductions against W-2 income, business income, capital gains, and everything else.

To qualify, you must meet two tests annually: (1) spend more than 750 hours in real property trades or businesses, and (2) spend more than 50% of your total personal services hours in real property activities. “Real property trades or businesses” includes development, construction, acquisition, conversion, rental, management, leasing, and brokerage. You must also materially participate in each rental activity (or elect to aggregate all rentals into a single activity).

Dollar example: A married couple earns $400,000 combined. One spouse is a full-time real estate agent who works 2,000 hours per year in real estate and qualifies as a Real Estate Professional. They own four rental properties that, after depreciation and cost segregation, generate a combined paper loss of $85,000. Because of REPS, the entire $85,000 loss offsets the couple's $400,000 income. At a 35% marginal rate, this saves them $29,750 in federal taxesin a single year — plus state tax savings.

REPS is difficult to achieve if both spouses work full-time W-2 jobs. It is most commonly used by investors who are also real estate agents, property managers, or full-time investors. Meticulous time-logging is essential — the IRS frequently audits REPS claims.

5. 1031 Exchange (IRC §1031)

A 1031 exchange (also called a “like-kind exchange”) allows you to defer all capital gains taxes and depreciation recapture when you sell an investment property, as long as you reinvest the proceeds into another “like-kind” property. “Like-kind” is broadly defined for real estate: you can exchange a single-family rental for an apartment complex, a retail building for vacant land, or a warehouse for a mobile home park.

The key requirements: you must identify a replacement property within 45 days of selling and close on it within 180 days. A Qualified Intermediary (QI) must hold the funds — you can never take constructive receipt of the proceeds.

Dollar example: You sell a rental property for $500,000 that you originally purchased for $300,000. After 10 years of depreciation ($72,727 total), your adjusted basis is $227,273. Your total gain is $272,727, consisting of $72,727 in depreciation recapture (taxed at up to 25%) and $200,000 in capital gains (taxed at 15–20%). Without a 1031 exchange, your federal tax bill would be approximately $48,182 ($72,727 × 25% = $18,182 recapture + $200,000 × 15% = $30,000 capital gains). With a 1031 exchange into a replacement property, you defer the entire $48,182 tax bill— potentially indefinitely if you continue exchanging.

See our complete 1031 Exchange Guide for detailed rules, timelines, and strategies.

6. Stepped-Up Basis at Death (IRC §1014)

This is the provision that turns tax deferral into permanent tax elimination. When you die, your heirs inherit your real estate at its current fair market value — not at your original purchase price. All of the capital gains that accumulated during your lifetime, and all of the depreciation recapture, are permanently eliminated.

Dollar example: You buy a property for $200,000 in 2025. Over 30 years, you take $200,000 in depreciation (the full building cost) and the property appreciates to $600,000. If you sold during your lifetime, you would owe taxes on roughly $600,000 in total gains (appreciation + recapture). At your death, your heirs inherit the property with a basis of $600,000 — its current market value. If they sell for $600,000, they owe $0 in capital gains or depreciation recapture. The entire $600,000 in gains and $200,000 in depreciation recapture is permanently eliminated. At a blended 20% rate, this represents approximately $120,000 in taxes that are never paid.

This is why many sophisticated investors pursue a “buy, 1031 exchange, die” strategy: they continuously defer gains through 1031 exchanges during their lifetime, and the stepped-up basis at death eliminates the deferred tax permanently.

7. Self-Directed IRA Real Estate Investing (IRC §408)

Most investors do not know that you can buy real estate inside a retirement account. A self-directed IRA (SDIRA) or self-directed solo 401(k) allows you to purchase investment property — rental homes, commercial buildings, raw land, mortgage notes — using your retirement funds. Rental income and appreciation grow tax-deferred (traditional) or tax-free (Roth).

The key rules: the IRA (not you personally) owns the property. All income goes to the IRA; all expenses come from the IRA. You cannot personally use the property or provide “sweat equity.” You cannot transact with “disqualified persons” (yourself, your spouse, your parents, your children). Violations result in a full distribution of the IRA, triggering income taxes and a 10% early withdrawal penalty if under 59½.

Dollar example: You have $150,000 in a self-directed Roth IRA. You purchase a rental property for $120,000, keeping $30,000 in reserve for repairs and expenses. The property generates $1,000/month in rent, all flowing into the Roth IRA. Over 15 years, the property generates $180,000 in rental income and appreciates to $200,000. You sell the property for $200,000. Total account value: approximately $310,000 (after expenses). Because it is a Roth IRA, all $310,000 can be withdrawn completely tax-free after age 59½. Compared to holding the property personally (where rental income is taxed annually and the sale triggers capital gains), the Roth SDIRA saves approximately $50,000–$70,000 in lifetime taxes, depending on your tax bracket.

8. Opportunity Zones (IRC §1400Z-2)

Opportunity Zones, created by the Tax Cuts and Jobs Act of 2017, offer a three-layered tax benefit for investing capital gains in designated economically distressed census tracts. There are approximately 8,764 Opportunity Zones across all 50 states.

The three benefits: (1) Deferral — capital gains invested in a Qualified Opportunity Fund (QOF) within 180 days of the sale are deferred until December 31, 2026, or when the QOF investment is sold, whichever comes first. (2) Reduction — originally, investors received a 10% basis step-up at 5 years and 15% at 7 years, though most of these deadlines have now passed for new investments. (3) Elimination— if you hold the QOF investment for at least 10 years, all appreciation on the QOF investment itself is permanently tax-free.

Dollar example: You sell stock for a $200,000 capital gain. Within 180 days, you invest the $200,000 into a Qualified Opportunity Fund that develops an apartment complex in a designated Opportunity Zone. You hold for 12 years. The investment doubles to $400,000. You owe deferred tax on the original $200,000 gain (due at the earlier of sale or the statutory deadline), but the $200,000 of appreciation on the QOF investment is completely tax-free. At a 20% capital gains rate, that is $40,000 in permanent tax elimination on the appreciation alone.

Opportunity Zone investments require careful structuring and ongoing compliance. The property must be “substantially improved” (capital invested in the property must exceed the original cost basis within 30 months), and the fund must hold at least 90% of its assets in qualified Opportunity Zone property.

See our Opportunity Zones Guide for a deeper analysis of eligible census tracts, fund structure requirements, and the substantial improvement test.

9. QBI Deduction (IRC §199A)

The Qualified Business Income (QBI) deduction, introduced by the Tax Cuts and Jobs Act of 2017 and currently set to expire after 2025 (unless extended by Congress), allows owners of pass-through businesses to deduct up to 20% of their qualified business income. Rental real estate can qualify, though the rules are nuanced.

The IRS created a safe harbor (Revenue Procedure 2019-38) specifically for rental real estate: if you spend at least 250 hours per year on the rental activity (or use a third-party property manager who meets the threshold), maintain separate books and records, and the rental is not a triple-net lease, it qualifies for the QBI deduction.

Dollar example: Your rental properties generate $60,000 in net qualified business income (rental revenue minus operating expenses, but before depreciation for QBI purposes). The QBI deduction allows you to deduct 20% of this amount: $60,000 × 20% = $12,000 deduction. At a 24% marginal rate, this saves you $2,880 in federal taxes. This is in addition to all other rental deductions.

Note:The QBI deduction is subject to income limitations for certain service businesses, but rental real estate is generally not classified as a “specified service trade or business,” so the income thresholds typically do not apply. The QBI deduction's future beyond 2025 depends on congressional action — monitor legislative developments closely.

10. Mortgage Interest Deduction (IRC §163)

All interest paid on debt used to acquire, construct, or improve an investment property is fully deductible against rental income on Schedule E. This includes interest on conventional mortgages, DSCR loans, hard money loans, private money loans, HELOCs used for investment properties, and lines of credit.

Critically, the $750,000 mortgage interest limitation that applies to personal residences (IRC §163(h)(3), as modified by TCJA) does not apply to investment properties. There is no dollar cap on investment property mortgage interest deductions. If you have $3 million in investment mortgages generating $150,000 per year in interest payments, the entire $150,000 is deductible.

Dollar example: You have a $240,000 mortgage at 7.5% interest on a rental property. First-year interest is approximately $17,850 (amortization-dependent). This $17,850 is fully deductible against rental income. At a 24% rate, this saves you $4,284 in federal taxes. Points paid at closing are also deductible, though they must be amortized over the life of the loan for investment properties (not deducted in full at closing, as with a primary residence).

11. Travel Deductions (IRC §162, §274)

If you own rental property, travel costs directly related to managing that property are deductible business expenses. This includes local mileage (driving to inspect properties, meeting contractors, showing units) and long-distance travel (flying to inspect out-of-state properties, attending real estate conferences and networking events).

For local travel, you can use the IRS standard mileage rate ($0.70 per mile for 2026) or actual vehicle expenses. For long-distance travel, deductible costs include airfare, hotel, rental car, and meals (at 50%) when the primary purpose of the trip is business-related. Real estate conferences, meetups, and seminars qualify as business travel if the content is directly related to your rental activity.

Dollar example: You own three out-of-state rental properties and make two inspection trips per year. Each trip costs approximately $800 (flights, hotel, rental car). You also drive 2,400 local miles per year for property management activities. Total travel deductions: $1,600 (two trips) + $1,680 (2,400 miles × $0.70) = $3,280 in travel deductions. You also attend one real estate investing conference ($1,200 registration + $600 travel costs). Grand total: $5,080 in travel deductions. At a 24% rate, this saves you $1,219 in taxes.

Critical rule:The travel must have a genuine business purpose. A family vacation to Florida with a 30-minute drive-by of a rental property does not make the entire trip deductible. The IRS scrutinizes travel deductions closely — keep receipts, document the business purpose of each trip, and maintain a mileage log.

12. Home Office Deduction (IRC §280A)

If you manage your rental properties from a dedicated space in your home that is used regularly and exclusively for rental management, you may be able to deduct a proportional share of your home expenses. The simplified method allows $5 per square foot of office space, up to 300 square feet ($1,500 maximum). The regular method allows you to deduct the actual percentage of home expenses (mortgage interest, property taxes, insurance, utilities, depreciation) based on the office's share of total home square footage.

Dollar example: You use a 200-square-foot home office exclusively for managing your rental portfolio. Your home is 2,000 square feet, so the office is 10% of your home. Annual home expenses: $12,000 mortgage interest + $4,000 property taxes + $2,400 insurance + $3,600 utilities = $22,000. Your home office deduction (regular method): $22,000 × 10% = $2,200 deduction. At a 24% rate, this saves you $528 in taxes. Even the simplified method yields $200 × $5 = $1,000 deduction.

The home office deduction for rental activities can be aggressive territory. It is most defensible if you self-manage multiple properties, spend significant time on management activities, and have a clearly separate, dedicated workspace. Document your hours and activities carefully.

13. Education Deductions (IRC §162)

Once you are in the business of renting real estate, expenses for education that maintains or improves your skills in that business are deductible. This includes books, online courses, coaching programs, subscriptions to real estate investing platforms and publications, and conference registration fees.

Dollar example: Annual education expenses: a real estate investing course ($997), books and audiobooks ($200), Capital Ladder subscription ($0 — we are free for core content), BiggerPockets Pro membership ($390), a local real estate meetup ($120), and one conference registration ($1,200). Total: $2,907 in education deductions. At a 24% rate, this saves you $698 in taxes.

Limitation:Education expenses that qualify you for a new trade or business are not deductible. A course on how to invest in real estate taken before you own your first property may not qualify. However, once you own a rental property and are in the business, ongoing education expenses to improve your skills are deductible. The distinction is between “entering a business” (not deductible) and “improving skills in a business you already operate” (deductible).

14. Installment Sales (IRC §453)

An installment sale occurs when you sell a property and receive at least one payment after the tax year of the sale. Seller financing is the most common form. The key tax benefit: you recognize gain proportionally as you receive payments, rather than all at once in the year of sale. This spreads your tax liability over multiple years and can keep you in a lower marginal tax bracket.

Each payment you receive is divided into three components: return of basis (tax-free), capital gain (taxed at capital gains rates), and interest income (taxed as ordinary income). The gain percentage is calculated as your total gain divided by the contract price.

Dollar example: You sell a rental property for $400,000 with an adjusted basis of $250,000, generating a $150,000 gain. If you receive the full $400,000 at closing, you owe capital gains tax on $150,000 in a single year: approximately $22,500 at a 15% rate. Instead, you seller-finance the deal: $80,000 down and $320,000 carried over 10 years. Your gross profit percentage is $150,000 ÷ $400,000 = 37.5%. In year one, the $80,000 down payment triggers $30,000 in recognized gain ($80,000 × 37.5%) — federal tax of approximately $4,500instead of $22,500. The remaining gain is spread across 10 years of payments, keeping you in lower tax brackets. You also earn interest income on the note (typically 5–8%), creating a stream of passive income.

Installment sales cannot be combined with a 1031 exchange (you must choose one or the other). They are most valuable when you want ongoing income from a sale rather than reinvesting the full proceeds.

15. DST Exchanges (IRC §1031 + Revenue Ruling 2004-86)

A Delaware Statutory Trust (DST) is a legal entity that holds title to one or more investment properties, allowing individual investors to purchase fractional beneficial interests. DSTs qualify as “like-kind” replacement property for 1031 exchanges under Revenue Ruling 2004-86, making them a powerful tool for investors who want to exit active property management while still deferring capital gains.

DSTs are particularly popular with retiring investors, those with large 1031 exchange obligations who cannot find suitable replacement property within the 45-day identification window, and investors who want institutional-quality real estate (Class A apartments, medical offices, distribution centers) without management responsibilities. Minimum investments typically start at $100,000.

Dollar example: You are 65 years old and sell a rental property with $300,000 in total gains (capital gains + depreciation recapture). You are tired of managing tenants and maintenance. Instead of buying another rental (and continuing management headaches) or paying approximately $60,000–$75,000 in taxes, you execute a 1031 exchange into a DST that owns a 200-unit Class A apartment complex managed by a national operator. You invest $500,000, defer the entire $60,000–$75,000 tax bill, and receive quarterly distributions of 4–6% annually ($20,000–$30,000/year) with zero management responsibilities. You also receive your share of the property's depreciation on your K-1, further sheltering income.

DST investments are securities offerings (typically Regulation D, Rule 506(b) or 506(c)) and are only available to accredited investors. They are illiquid — you cannot sell your DST interest on a secondary market in most cases. Hold periods are typically 5–10 years.

Combining Multiple Benefits: A Comprehensive Example

The true power of real estate taxation emerges when you stack multiple benefits together. Here is a realistic example of a mid-level investor:

Profile: A married couple earning $180,000 combined from W-2 jobs. They own two rental properties worth $300,000 and $350,000 respectively.

• Depreciation (both properties): $200,000 + $240,000 building value = $440,000 total depreciable basis. Annual depreciation: $16,000. Tax savings: $3,840
• Mortgage interest (both properties): $380,000 total mortgages at 7%. Annual interest: approximately $26,000. Tax savings: $6,240
• Property taxes: $6,800 combined. Tax savings: $1,632
• Insurance: $3,200 combined. Tax savings: $768
• Repairs and maintenance: $4,000 combined. Tax savings: $960
• Property management (10%): $4,200 combined. Tax savings: $1,008
• Travel: $1,500. Tax savings: $360
• Education: $1,200. Tax savings: $288
• QBI deduction (20% of net rental income): Approximately $2,000. Tax savings: $480

Total annual tax savings from deductions: approximately $15,576. And this does not include the capital gains deferral from a future 1031 exchange or the eventual stepped-up basis at death.

Tax Benefit Quick Reference Table

Legislative Watch: Benefits at Risk

Several of these tax benefits are not permanent features of the tax code. They were created or modified by legislation and have expiration dates or phasedown schedules. Investors should monitor these closely:

• Bonus depreciation (IRC §168(k)): Stepped down from 100% in 2022 to 20% in 2026, reaching 0% in 2027 unless Congress acts. Multiple bipartisan proposals to restore 100% bonus depreciation have been introduced but not enacted as of early 2026.
• QBI deduction (IRC §199A): Scheduled to expire after December 31, 2025. If not extended, rental property owners lose the 20% deduction on qualified business income. At $60,000 in QBI, this is a $12,000 deduction ($2,880 in tax savings at 24%) that simply disappears.
• Opportunity Zone capital gains exclusion: The 10-year holding period for tax-free appreciation on QOF investments remains in effect, but the deferral deadlines for original gains have largely passed. The program's future depends on congressional reauthorization.
• 1031 exchanges: Periodically targeted by budget proposals seeking to cap or eliminate like-kind exchanges. The provision has survived every attempt so far, but it remains a perennial target in revenue-raising discussions.

Common Mistakes That Cost Investors Money

Understanding the benefits is only half the equation. Investors regularly leave money on the table by making these avoidable errors:

• Not depreciating the property at all. Some first-time investors do not realize depreciation is mandatory — the IRS treats it as “allowed or allowable,” meaning they will recapture it at sale whether you claimed it or not. If you fail to depreciate, you lose the annual deduction but still owe recapture tax when you sell. This is pure loss.
• Incorrect land-to-building allocation. Overstating the land value reduces your depreciable basis and costs you money every year for 27.5 years. Use the county tax assessor's allocation as a starting point, and consider an independent appraisal if the land percentage seems unreasonably high. A 5% difference in land allocation on a $300,000 property changes your annual depreciation by $545.
• Classifying improvements as repairs (or vice versa). Incorrectly classifying a $12,000 roof replacement as a “repair” creates an aggressive deduction the IRS may disallow. Conversely, classifying a $500 faucet replacement as an “improvement” that must be depreciated over 27.5 years wastes a current-year deduction. Understand the distinction and use the de minimis safe harbor ($2,500 per item) for smaller expenditures.
• Missing the 45-day identification window on a 1031 exchange. The 45-day clock starts the day you close on the sale, not when the proceeds are wired. Missing this deadline by even one day disqualifies the entire exchange, triggering the full tax bill. Plan your identification list before closing.
• Not tracking suspended passive losses. If your CPA changes from year to year, or if you use tax software without careful carryover, suspended passive losses can be lost. These losses are real money — they will be released when you sell. Maintain your own record independently.
• Failing to take the QBI deduction. Many investors (and some CPAs) do not realize rental income can qualify for the 20% QBI deduction under the 250-hour safe harbor. If you self-manage your properties and spend 250+ hours per year, you may be leaving a significant deduction unclaimed.

How These Benefits Interact with State Taxes

Federal tax benefits are only part of the picture. State income tax treatment of real estate income varies significantly:

• No income tax states (TX, FL, NV, WA, WY, SD, AK, TN, NH): Investors in these states keep more of their rental income because there is no state income tax on top of federal. However, if you invest in property located in a state with income tax, you may still owe that state's tax on income sourced there.
• Conformity to federal depreciation: Most states conform to federal depreciation rules, but some (notably California and New Jersey) do not fully conform to bonus depreciation. If your state decouples from federal bonus depreciation, your state tax return may show higher taxable income than your federal return.
• 1031 exchange recognition: While all states recognize federal 1031 exchanges, some states (California, Oregon, Montana, Massachusetts) have “clawback” provisions: if you exchange property located in that state for property in another state, you may owe state tax on the deferred gain when the replacement property is eventually sold.
• State passive loss rules: Some states have their own passive activity loss limitations that may differ from federal rules. Review your state's treatment with a local CPA.

The interplay between federal and state tax treatment makes multi-state real estate investing considerably more complex. Factor state tax compliance costs ($200–$500 per nonresident state return) into your investment analysis.

Getting Started: Your Action Plan

You do not need to master all 15 benefits at once. Here is a prioritized approach based on where you are in your investing journey:

• First property: Focus on depreciation, mortgage interest, and the $25,000 loss allowance. These three alone can save you $5,000–$15,000 per year.
• 3–5 properties: Add QBI deduction, travel deductions, and consider entity structure. Explore cost segregation on your most valuable properties.
• Scaling or selling: Plan 1031 exchanges well in advance. Evaluate whether REPS is achievable. Consider installment sales or DSTs for exit strategies.
• Building generational wealth: Layer 1031 exchanges with the eventual stepped-up basis. Explore self-directed IRA investing for retirement-specific capital.

The most important step is finding a CPA who specializes in real estate investing — not a general tax preparer. A real estate CPA will proactively identify these benefits and ensure you claim every dollar you are entitled to. Expect to pay $300–$800 per property per year for CPA services — if they find even one missed deduction, the savings will exceed their fee.

Sources: Internal Revenue Code Sections 163, 167, 168, 168(k), 199A, 280A, 408, 453, 469, 1014, 1031, 1245, 1250, and 1400Z-2; IRS Publication 527 (Residential Rental Property); IRS Publication 946 (How to Depreciate Property); Revenue Procedure 2019-38 (QBI Safe Harbor for Rental Real Estate); Revenue Ruling 2004-86 (DST qualification for 1031 exchanges); Tax Cuts and Jobs Act of 2017 (P.L. 115-97). This guide is for educational purposes only and does not constitute tax or legal advice. Tax law is complex and subject to change. Always consult a qualified CPA or tax professional before implementing any tax strategy. See our full disclaimer.