Live in a property 2 of 5 years for $250K/$500K §121 exclusion, THEN §1031 exchange the rental portion.
Rev. Proc. 2005-14 blesses stacking §121 (primary residence exclusion) with §1031 (like-kind exchange) on a property converted from personal use to rental. Live in it 2 of last 5 years → exclude $250K single / $500K MFJ of gain. Convert to rental (24+ months recommended per Rev. Proc. 2008-16 safe harbor). Then §1031 exchange the remaining gain into a like-kind rental — indefinite deferral on top of the exclusion. Depreciation recapture still taxable but can be minimized with cost-seg + bonus depreciation on replacement property.
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Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.