I spoke with a seller in Moore County, NC and they told me they have the lowest taxes in the state. I then spoke with a property manager who said that may be true, but that particular county went ahead and prorated th...

If I get 130k income from the property and a mortgage of 100k, is my taxable income 30k or am I taxed on the 130k?

You should pay yourself a modest salary ($500 a month) and the rest would be non-taxable distributions.

You would pay yourself a modest salary each month and then all amounts above that would be considered non-taxable distributions.Joe

The net result is that the "taxable income" from the rental may well be negative even though the cash flow (aka money in your pocket, which is rent - expenses - mortgage payment) may be positive.There are limitations, though, on your ability to deduct this against ordinary income.

As far as a 1099 yes the lender will write off the loss and send the debtor a 1099 (almost always) which is treated as income and taxable by the debtor… However, there is a new law that just went into effect and under the right circumstances it makes it so the lender can not 1099 the debtor.

Neither of us will have any "taxable" cashflow with which to approach mortgage brokers with, as any money I've made the past 3 years has been from poker (non-taxable, treated as a windfall in Canada).

Nor could you lease a rental to a disqualified person.Certain income is taxable under the "unrelated business taxable income" rules.

It is also my understanding that assets contributed to the corporation are contributed at cost basis, but if withdrawn, they are withdrawn at FMV which may create a taxable capital gain for the taxpayer.My understanding may be imperfect, but these issues certainly bear further examination.

In either case, one challenge with a bullion sale is the 28% 'taxable event'.