An installment sale can spread eligible gain from rental or investment property over several years, but depreciation recapture, seller financing interest, mortgages, passive losses, related party rules, and California withholding can change the expected tax result. Learn what real estate investors should calculate before agreeing to seller financing.

Grouping rental activities can make material participation easier to establish, but it can also delay the release of suspended passive losses when one property is sold. Learn the difference between general activity grouping and the real estate professional election to combine rental real estate interests.

Short term rental losses are not automatically nonpassive. Learn how the 7 day and 30 day rules interact with material participation, when real estate professional status is unnecessary, when Schedule C and self employment tax may apply, and how cost segregation can affect the tax result.

A Section 1031 exchange can defer gain on qualifying investment or business real estate, but the transaction must satisfy strict federal rules. Learn how the 45 day identification deadline, 180 day exchange period, qualified intermediary rules, boot, debt replacement, basis, related parties, vacation property, reverse exchanges, and depreciation interact.

Cost segregation can substantially accelerate depreciation on rental property, especially under the current federal 100 percent bonus depreciation rules. Learn how the strategy works, which assets can qualify, how passive activity rules can limit the deduction, what happens when the property is sold, and why California investors need a separate depreciation analysis.

A loss on rental or business property can receive favorable ordinary loss treatment under Section 1231, but that does not always mean the entire loss is immediately deductible. Learn how annual netting, passive activity rules, basis and at risk limits, excess business loss rules, depreciation recapture, and the five year lookback affect the final tax result.

Suspended passive rental losses can remain unused for years, but they generally do not expire. Learn four ways real estate investors may be able to use these losses, including passive income, the special rental allowance, former passive activity income, and a qualifying taxable disposition.

An S corporation can own rental real estate, but appreciating property can become expensive to remove. Learn how property distributions, leveraged contributions, LLC elections, liquidation, Section 1031 exchanges, self rental rules, estate planning, former C corporation status, and California taxes can affect the structure.