NOI = Taxable rental income + depreciation + interest expense.

That is, all subsequent taxable returns will be reduced each year by at least your marginal rate.

In most cases, if you make quality decisions when you buy, your property will show taxable income on your schedule E even after depreciation.

Being that you probably have a significant basis in the trust you could make a distribution that would only lower your basis and not be taxable.

I have invested in several Reg D offerings, and each of those paid a percentage of taxable income, generally ~75%.

Transfer tax in Philly is 3% and PA 1%, so this is a big impact of even considering this.Any help that anyone can provide is much appreciated.As Bill Gulley (thanks for the @mention heads up) already pointed out, that transfer will be considered a taxable event for real estate transfer tax purposes by the PA Dept of Revenue.

You can use the C-corp to JV, lend, or pretty much whatever you would like as it is a taxable business.

You mean s-corp owner contracts his own labor to the corp thus shifting taxable income from 1120 to 1040?

It is called UBTI (Unrelated business taxable income) and that is taxed at "Trust Rates" not the same thing as normal income tax rates.Finally it is rarely advisable to borrow against your retirement funds, unless it is a personal or family emergency.

The other thing is you still will get some benefits b/c you always can still reduce your taxable income with paper deductions such as depreciation.