Tier 1: Statutory. Take them.
The Code says what it says; your only job is the filing mechanics.
- The §121 exclusion
-
Up to $500,000 of principal-residence gain, tax-free, repeatable every two years (section “Selling Houses”). Watch the depreciation carve-out, the nonqualified-use proration, and the five-year clock on property acquired in a 1031.
- The Augusta rule
-
Fourteen days of rental income that never touches your return ( IRC §280A(g)) — including rent paid by your own business at a documented market rate (section “Operational Deductions and Family Employment”).
- Cost segregation plus bonus depreciation
-
Reclassify the short-life components and deduct them in year one (section “The Magic of Cost Segregation”). Pure acceleration, fully statutory; the only real risk is a junk study, so buy an engineering-based one.
- Partial asset dispositions and the repair safe harbors
-
Write off what you tore out (section “Partial Asset Disposition (PAD) Election”) and expense what the elections let you expense (section “Repair or Improvement? Use the Safe Harbors”). A written policy and an election statement, nothing more.
- The 1031 chain to a step-up
-
Defer indefinitely, die, and IRC §1014 erases both the gain and the recapture (section “Selling Houses”). Works only if you actually hold to death; exiting mid-chain pays everything you deferred.
- Qualified nonrecourse financing
-
A bank mortgage counts as at-risk basis with no personal liability ( IRC §465(b)(6)) — the quiet rule that makes leveraged depreciation work at all (section “Real Estate Income Taxation”).
- The Bolton allocation
-
Allocate a mixed-use home’s interest and taxes over 365 days rather than days of use (section “Personal Use of Rental Property”). Controlling law in the Ninth and Tenth Circuits; a disclosed, defensible position elsewhere.