@Steven's remarks....Steven, what is the tax implication to the LLC if Mark chose his entity classification election (via 8823) as an S-Corp?

I was told about this particular company from another wholesale investor and the president at the REIA.

A statement that you are making an election under section 451(d) of the Internal Revenue Code and Regulations section 1.451-6.

An LLC is a pass through entity for taxes, unless you elect to be taxed as a S or C corporation.

So, even if it is a charged debate topic, just like tax and immigration reform are always hot topics come election year that are forgotten about one week after innaguration, responsible middle class people will not get rewarded for good behavior.

Yes you can try to get another appraisal and see what happens.If they have lived there that long they have worn down the house some and if they left you would have re-conditioning costs before you could rent again.If it is possible and you can still make money I would sell now.Interest rates are at all time lows and the down payment is manageable.With the election coming we don't know the direction of where the housing industry is going.Lending money could get tighter and interest rates could rise even if values stay the same.If you tell the buyer they lose the option and to get out they will most likely do damage to the property.I would check too see if the buyers even have the ability to purchase right now.Have you seen evidence of the required down payment in a bank account and have you seen their credit report??

If there are multiple members, then by default the LLC will be treated as a partnership, unless you elect to be treated as an S-Corp, or C-Corp.

HR 4 (Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011), which the President signed on April 14, 2011, very clearly repealed the requirement for landlords to file 1099-MISC.

For now, I have elected to go the Land Trust route.

., C Corp or LLC) for the legal end and you can later make the S Corp election for either entity to take advantage of the tax aspects.In other words, an LLC and C Corp that elect an S Corp status are treated exactly the same for taxes.