In the US the short version of the tax code is, "income, from whatever source derived, is taxable".all cash

If you rent out a vacation property for at least 15 days in a given year and your personal usage is limited to 14 days or 10 percent of the time it is rented (whichever is greater), then the property is considered rental property so you receive the following benefits:- All business expenses (including mortgage interest, property taxes, insurance, advertising, and maintenance) can be deducted against rental income received on the property - If the total expenses are less than the gross rental income, the resulting profit is taxable income - If the total expenses exceed gross rental income, the resulting loss can be used to offset income from other investments From a fractional perspective, how many days it is available for rental obviously depends on the number of fractions that have been allocated.

It's only the GAIN that is taxable, I've seen people go to a lot of trouble setting up a 1031 when they had very little gain, and therefor almost no taxes, especially in TX where we don't have an income tax.Please clarify some of your statements, I'm confused.Why would you buy another house with your exchange proceeds and then allow your residence to go into foreclosure, again, I'm confused.all cash

As you mention, you do get to take depreciation on the property as a deduction, and that's very likely to make your taxable income negative.

No idea if this will damage the value (sales would not be as brand new property) or if you can restructure your share of the deal so you take title to specific units without a taxable event.

How long you rent your house out has nothing to do with the gain becoming taxable, it becomes taxable as soon as you rent it!

The income of $10M is taxable.

Remember a taxable event occurs when the sale is recognized, regardless of when you get the cash.

It would lower his taxable income and reduce his taxes owed, so he gets a benefit there.In the end, if Mike wanted to leave, then Joe does not have to quit-claim or sell the property to another LLC.

.; current SEV $162,400; taxable value current $145122From the listing agent: Nice old lady has owned them for 30 years; built in '70's; currently has one vacancy; all units are 1 yr lease; half of tenants have been there for a very long time (years); other 8 units turn about 1x/yr; great neighborhood; upscale community; walking distance to downtown; roof is 4 years old; hot water heat (LL pays); "A" propertyHave not seen the inside yet, from the pictures I've seen the kitchen/bathrooms are outdated.