Using one's interpretation of value can be accomplished by doing a WACC calculation for a given loan constant and required return to equity.While is does normalize things using cost it really doesn't make things equal.

Taxes change and how things are treated or interpreted in taxes change.

Interpretation of the statue seems to vary, does anyone have a definitive answer?

I just wanted to see if people had other interpretations of the rule.

Like Jon said above. you will often be conducting business with a second to 4th grader as interpreter.

This is not an area of the law that is crystal clear, and is open to interpretation.

With a little rehab it will sell for a good $25-$30k above the balance owed.My TAX interpretation of the 'deal' is the following.....-: the property was & remains an arms length transaction.-: title to the property would now be assumed by the 401(k) solo due to the default of the note & the subsequent execution of the DIL.:- now the profit from the eventual sale of the property should be held tax free in the 401(k) solo for future disposition.am I Correct ???

Every state has different rules regarding wholesaling and every attorney has a different interpretation of the law.

I feel like if you do not give a reason it could be interpreted as violating the fair house act.  

@Naseer Khan you may be right but it was my interpretation of the CA LLC law below (bolded for the citation I am referring to):Under California law, all LLCs are required to annually file a California tax return and pay at least an $800 California franchise tax if they: Engage in any transaction in California for the purpose of financial gain or profit.Are incorporated or organized in California.Have qualified or registered to do business in California.Are “doing business” in California, whether or not they incorporated, organized, qualified or registered under California law.The Franchise Tax Board (“FTB”) takes the position that an LLC organized in a jurisdiction outside California is nevertheless “doing business” in California if: It is a member of an LLC that does business in California.It is a general partner in a partnership that does business in California.Any of the LLC’s members, managers, or other agents conducts business in California on behalf of the LLC.In addition, an out-of-state LLC is “doing business” in California if: The LLC is commercially domiciled in California (i.e., California is the place where realistic control of the LLC’s functions is centered).Sales, including sales by the LLC’s agents and independent contractors, in California exceed the lesser of $500,000 or 25% of the LLC’s total sales.Real or tangible property of the LLC in California exceeds the lesser of $50,000 or 25% of the LLC’s total real and tangible property.The amount paid in California by the LLC for compensation exceeds the lesser of $50,000 or 25% of the total compensation paid by the LLC