. $250K of the profit you can declare and not pay any income tax at the Federal level.3.

Much of what you unearth here on BP is universally applicable, but it does tend to be U.S.A. specific, so just keep in mind what you read, particularly with respect to taxation, regulation and finance, we be a little different here at home.

All my stock is in my IRA's and 401k so I have never had to pay a capitol gains tax at all.So basically all income form either the building process and the sale will be earned income taxable.

Advantages and disadvantage in taxations.

.-- I don't believe my buying out the siblings raises the cost basis since, as I understand, the house stays in the same taxation position as the person who is "gifting" the duplex.

If you are not making a lot on the rent then that depreciation deduction would end up with you showing a loss on paper that could potentially shelter some of your other income from taxation.

As you pointed out in your blog post, http://realheartland.wordpress.com/2014/03/05/out-of-state-taxation/ the answer seems to always be "it depends".

I am currently working on finding a way to shelter funds from taxation.

Account ClosedYou are allowed to withdraw up to $10,000 to be used for the first time home purchase.Contributions into Roth IRA have already been taxed, therefore those can be taken out without taxes or penalties, the earnings in the Roth IRA however would be subject to penalties and taxation if you take early distribution.I believe you can buy multi-unit, as long as you buy it as owner-occupied, and yes, you can use FHA loan.

Once it becomes necessary to adopt S-Corp taxation, you simply file IRS Form 2553, and VOILA!