I have a few questions about what the government considers income, and what can be deducted from that income.I think I can deduct things like:Property taxesMaintenance feesMortgage interestDepreciationI am not sure if I can deduct:Repayment of mortgage principleI believe rent paid to me is taxable income, and then I deduct the above items from that.

But getting into matters where people need to improve credit, earn target amounts as taxable income or paying off debts requires an indepth knowledge of these matters.

Let's say 100k income with 70k deductions and 30k taxable income will it be same ($900-$1100) scenario as W-2?

Forgiven debt is taxable income, though, so the seller might end up with a tax bill.

After deducting depreciation (27.5 yrs resi, 39 commercial), Equity Man has taxable income of about $6551.

I expect to hear from Jon H soon :) Since the main benefit of the Roth is to allow gains to accumulate tax-free it seems counter-productive to do something that makes the gains taxable.

If the IRS at some point figures out some entity is generating taxable income, perhaps from the documents title companies have to file, and decides you should have been filing returns and paying taxes, then you will be subject to taxes and penalties.You are correct that "active" isn't 100% cut and dried.

Take the ARV of it as a two bedroom minus the repair costs and thats your taxable distribution value.

Reducing taxable income?

The NOI will be taxable and the NOL will be subject to the $25K limitation and the phase out.There are, of course, other reasons to choose an LLC for holding your property.