Can I designate a non-spouse (business professional partner without a job) as a real estate professional within the LLC (both of us would be on the LLC) and then use this to offset my W2 taxable income?   

If sold before his death a good estimate would be pretty close to 20% of the selling price in federal taxes. (15% on the capital gains which is nearly 100%) plus 25% on the building’s depreciation.

We’d like to transfer their interests to an LLC – however, we do not wish to be treated as a partnership for federal tax purposes. 

Depreciation: For investment properties, you can depreciate the property over a set period, reducing your taxable income.5. 1031 Exchanges: This allows you to defer capital gains tax by reinvesting the proceeds from a sale into a similar property.Feel free to ask any questions or share your own experiences!

Sue K. this is federal law...applies to all 50 states. 

check with your insurance agent.. also federal law dictates that when your owner occupying your 1 to 4 unit you don't have to follow the normal fair housing laws.. you can pick and choose who you want to live in the units .. now some cities or states may have overriding rules regarding this.. but federal law is clear.. on owner occ 1 to 4.. your exempt from fair housing.so you can have a dog and you could restrict dogs for others.there is a well known list of aggressive breeds that insurance companies wont insure.. this is easy information to get.

Once you get to around $14k you're going to scale up to $37% but you can deduct half the expenses and depreciation which will reduce your taxable amount of income..again without knowing the income this is not possible to calculate.   

When people refer to the Federal Reserve “setting rates,” they mean the effective federal funds rate or the rate at which banks charge other institutions on an overnight basis.

You have to include the capital gain from the sale of the property which will likely put your taxable income above $89,000.Some of the capital gain will be taxed at 0% and the remaining will likely be taxed at 15%Do not forget about state taxes.

I do have to pay state and federal taxes.