This 40k will flow to your tax return and you will pay taxes on it at ordinary income rates.4) You take out $105k from your LLC (shareholder distribution).

Currently, my salary is 30k and the rest is distributed in owner draws.

-Jacob Not a big deal, but what comes up is that typically you cannot use rent derived from your departing primary residence to qualify.

Successor trustee wants to minimize taxes upon distribution of these tax sheltered accounts. 

A self-directed Solo 401k or IRA could be used to invest into real estate, but those investments would grow your retirement account balance which you can use as income when you take distributions, presumably in retirement.

The distinction of Real Estate professional is deriving your income from spending more than xxx hours working in the Real Estate profession.

I would find a CPA who has dealt with it before, however, because my experience with Virginia is that they are quick to disallow valid OSTCs.In regards to your other question, you are allowed to make distributions from the LLC to yourself as the owner. 

A board member and a ho logged the bids, then took them away, copied them the next morning and distributed them.

What lenders are doing is in fact forcing appraisers to use comps that are at times inappropriate for comparison purposes, then making a huge number of adjustments to derive a value.

Thus it is in my own endeavors buying property.So bad times may certainly come, but they will be distributed unequally throughout the land, IMO.