Front-load depreciation on a rental, then convert to primary to escape recapture on appreciation.
Buy a rental, do a cost-segregation study to front-load $100K–$500K of accelerated depreciation, then eventually convert to primary residence and hold 2+ years to qualify for §121. Depreciation recapture on the RENTAL PERIOD stays taxable, but any post-conversion appreciation flows through §121 tax-free. Combined with the §121+§1031 combo, this is the most tax-efficient long-hold real-estate playbook that exists.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
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.