Anyway my in-law hit multi-mil jackpot and has to pay a lot of tax at the end of the year. She is 58. I am advising her to do RE since she doesn't own any property right now, with 2 kids in post bachelor study who will need homes to live and invest. We live in California.

Essentially she will get about 7 mil. I guess based on her tax bracket tax will be at least 30% for fed and CA state, which come out to be around 2.1 mil?

Anyone have any experience of what best to use this tax(to be paid later if not used) money invest, probably buying rental, apartments?. Since 2.1 mil without investment is going to uncle Sam anyway, this will be very wise choice for her to invest, if she agrees, and generate passive income with me helping her managing these properties.

Can we use the full 2.1 mil to invest and pay little or no tax since she can write off pretty much everything regarding rentals? How much deduction we can get ( I know we need a CPA) if we invest in rentals?

I also thinking of have her buy a nice house for rental, and pay if off. Then we will move in and pay her monthly payment, and then in the future quick claim to my name, is it possible or legal for her and us?

I don't want to sound like me taking advantage of her but I believe 2.1 mil or whatever tax amount should be used to her advantage and essentially generate passive income for her and give me opportunities as well.

I really appreciate any good advise.

Realestate values are currently falling in California and much of the rest of the country and interest rates are quickly rising. Currently, landlords are having a hard time because the rental income they are receiving often isn't enough to cover their mortgage payments, rental property upkeep and property taxes. That tells me that rental realestate might not be such a good investment at the present moment.

As for your other questions, as dcgrrrl stated above, seek the advice of a professional cpa and/or cfp. The kind of advice your in-law requires can't be sought from a forum on the internet. You need face-to-face consultation with someone who is able to look at the specifics and analyze the big issues.

There is too much to consider in your situation.  First of all, CONGRATULATIONS!!

Good use of money is to hire a good CPA and attorney that will not take advatage of your recent fortune and maybe you have a relationship with?

mcpa

Better yet - a referral would be better than someone you have a relationship!

mcpa