I don't mind paying tax at all, but a gross receipts tax is an outrage  ... actually, I think Americans complained about that once, something about a tea party.

Prat,I recommend finding an accountant who specializes in real estate taxation over one that is local.

Prat,I recommend finding an accountant who specializes in real estate taxation over one that is local.

I was struggling trying to wrap my head around the double-taxation aspect but I think I've understood it now.

Also, I hate the fact that for taxation reasons I need to "double" input the information from my PM into my QuickBooks, manually.

But losing money is never the right move, so I would consider Paul's suggestion of executing a 1031 exchange.If you're not familiar, a 1031 exchange is a lovely little tax loophole granted by the IRS to encourage investors to keep investing, in exchange for the promise of deferred taxation.

You can check the NJ tax info here: https://wwwnet1.state.nj.us/Treasury/Taxation/TYTR...- Is this property close enough to the school to attract other students?

You should be paying sales tax at the point of purchase for all materials on your rehabs...if you're pulling permits to do the work, most jurisdictions will ask you to put up a use tax bond for the work.  

One example given is that outside of your SDIRA - if you sell a property , it is immediately subjected to taxation to the tune of 20% or so - that means you only have 80% of that money available to invest into another property - of course you can do a 1031 exchange to defer the taxes - but doing a 1031 exchange is not always that easy - there are certain restrictions and time limits that you have to adhere to or you wont be able do it properly - you have to identify your subject property within 45 days and many investors will identify multiple properties so that if they don't get the offer accepted on one - then they have others to fall back on  - if you cant find another property quickly - then you may not be able to 1031 it.

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