We're also a linear market and not subject to the wild swings in value.

Germain Act and using a trust for subject-to approaches that may work for this kind of transfer, but I’m not sure it totally applies to my situation.The previous replies stated answers to your questions, but some of the answers may not have been clear. 1.

I keep getting mixed answers I don't know why this real estate professional tax status is confusing to me along with cost segregation and bonus depreciation no matter how much I read about them If you qualify as a REP you can utilize those losses to offset your Income subject to Federal Income Taxes. 

.- Requires active management - Subject to regulatory risks - Income can vary seasonallyI wish you the best in your new venture.

If you are buying cashflowing properties, your DTI should improve with every property.Greg brings up a good point, but keep in mind you can only offset the subject property income by using 75% of the rent UNTIL you file it on your tax returns.

Since moving into another fixer-upper isn’t ideal right now, consider leveraging your $40K for a low-money-down investment, like house hacking a small multifamily or using creative financing (seller financing, subject-to, or partnerships) to avoid tying up all your capital.

@Paul MooreInterested in learning more about this subject as.

Since the property is being held for less than 12 months, the IRS will likely classify it as a dealer property, which means the profits from the flip are subject to ordinary income tax rather than capital gains tax.

., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

The best thing this community can do is encourage your son to run far away from a subject to deal.