The transfer tax (a BS tax imo) is typically paid by the borrower & is only charged if a village has a transfer tax charge.I could be wrong but I don't think a seller would ever pay for a buyer's property taxes.

The seller would defer some tax by financing the property, essentially paying the tax as he received the payments.The seller could also do a IRC Section 1031 and defer the taxes to death and beyond.

Natalie Kolodij Bill Exeter Steven Hamilton II thanks all - my brother doesn't meet the criteria and will be subject to a gains tax as he sold and didn't 1031 anything.He insisted all vets were generally exempt from gains tax and while I am no tax expert, I am a lawyer and told him I read the section(s) myself and saw nothing about vets being totally skipped on uncle sam's pay.

Above, and a few times elsewhere I have seen it referred to as 'taxed at ordinary income tax rate', which I tax as meaning if I am in the 12% bracket, it would be at that rate. 

@Ahmad Omar While you're probably OK with the Form 65, in my experience Alabama will come after new LLCs with no activity to make them file their initial business privilege tax return (BPT-IN) and pay the $100 minimum tax."A

And then later she can sell it and if it was legally her primary home for at least 3 years, then she will receive all the funds tax free, and I pay no gift tax.  A

The RE owned is assessed as any similar property, the business side should be valued on its own merits, NOI, potential market, liabilities and tax as well as regulatory issues like the city health department.If you want a hands off business I'd say rentals....

No recaputure tax as long as the property's been on straight line depreciation.

Based on your plan you would be taxed at ordinary income rates, not capital gains.If you did that many houses you would be considered a dealer and may be subject to self-employment tax as well. 8)

After closing on the property yesterday, I was told that in order to add him on the deed, there would be a significant transfer tax, as we are not related.