Tax Planning 

Tax planning in the broader context of financial planning is all about reducing, postponing, avoiding, or eliminating the tax consequences of a financial activity. You should seek tax-planning advice from a professional tax accountant.

Real estate is a favored asset in the U.S. tax code and offers perhaps one of the few opportunities for house-holds to take advantage of the tax system in their financial planning activities. The favored tax treatment on property is a long list and includes: the mortgage interest deduction, property tax deduction, passive loss treatment, capital gains exclusion, deductibility of certain closing (settlement) costs, and 1031 transfers, to name a few. I recommend that you discuss these issues at length with a professional financial advisor and / or accountant.