Positive Income Issues do exist. Any advice would be great.

[Yeshua Williams]

A little while back we acquired a property that was a real fixer-upper.   Well, we did a good job and now have positive cash flow.  In terms of positive cash flow, what do you do for taxes?  We'd like to take some out but our tax guy says a 1099 "will murder you".  We'd explored the typical W2 employment route and taxes there are insane.

We'd like to get another property, but want to keep this one so an exchange is out. What do you do here? I don't want to take just income out, so do you loan it to yourself and then use that to buy another property? Do you just form another LLC/Trust and then have one loan to another?

Any experiences you could share?  Thanks!