This plan is not subject to UDFI taxation on leveraged real estate investments.  

Especially when the property is remote from the owner, I think a quarterly report of rents and expense details should be required. 

However, by changing investment income to ordinary income, on would now owe social security and Medicare tax, at the combined rate of 15.3% (both sides), less deduction from income of one half of the tax, so effective rate of 12 - 13 %.  

If one decides to reside in one of the units for 2 years prior to selling will the $500k exclusion take place and gains taxation would only be imposed on a selling price of $600k or higher?

Tomorrow the final coat will be applied, and by the day after the handyman and I will be able to walk on it and start doing finishing jobs like fans, lighting, quarter rounds, and blinds.We also have a tenant lined up with the lease due to be signed this Friday, at the hoped-for rate of $650/mo.  

It creates potential for two-layer taxation and creates tax deductibility issues for losses. 

Hello everyone, I have been a "silent reader" of this great community, and appreciating every single post. However, I haven't run across the following topics. Hopefully someone with knowledge would shed some light:1. ...

I guess each buyer will have to determine for themselves whether or not the LLC is financially beneficial based on the savings and benefits the LLC could provide them versus any taxation drawbacks.

Hey guys, wondering what the locals think will be the impact of this from, here is the article from IBJ:September 6, 2016Hayleigh ColomboCarmel-based for-profit college operator ITT Educational Services Inc. announced Tuesday morning that it will permanently “discontinue academic operations” at all ITT Technical Institutes campuses.The company has already eliminated the “vast majority” of its 8,000 employees and canceled the fall academic quarter, which had been scheduled to begin this month, according to a statement released Tuesday morning.ITT Educational operates more than 130 ITT Technical Institute campuses in 38 states.ITT Tech announced a week ago it would stop enrolling students, and an Indianapolis charter school run by the companyhas also shut down.The move follows years of scrutiny by the federal education department over its recruiting methods and students’ educational performance, and recent actions that made itineligible to accept new studentswho relied on student loans.In its statement Tuesday morning, ITT called the federal sanctions “inappropriate and unconstitutional.""

We own 3 units currently.I am realizing that there are some advantages to the Solo 401K (yes I qualify) such as not having UDFI taxation when borrowing which I intend to do along with much higher contribution limits.