OTM is what the government uses you know Other Taxpayers Money :mrgreen:

From taxpayers $$, no.

I expect the tenant's rent to cover all our own housing expenses.All in all, when we put it all down on paper, we calculated that moving out of the condo and selling it to cover our complete current debt load, renting out half the duplex, and living in the other half, will allow us to save over $40,000 yearly in various loan payments, utility payments, and tax payments.

the statue reads that the "taxpayer" must be the same on the relinquished and replacement properties. 

However, in the US, 16% of taxpayers owned investment properties.

The $25,000 allowable loss starts phasing out at $100,000 and completely phased out at $150,000.Below is an example from the IRS websiteKate, a single taxpayer, has $70,000 in wages, $15,000 income from a limited partnership, a $26,000 loss from rental real estate activities in which she actively participated, and isn’t subject to the modified adjusted gross income phaseout rule.

., yes there's some pretty clear guidance from case law that changing the tax payer (owner) of a property right before sale puts your 1031 in jeopardy. 

This post is wrong when it comes to taxes.If you are mentioning 21%, I assume you are talking about your accountant suggesting an LLC to be taxed as a C-Corporation.You did not mention how the cash will flow to the owners/members which may count as a dividend which if the taxpayer is in the top bracket, likely be close to 20% Federal Income tax, 3.8% net investment income taxes and state taxes.Furthermore, if you are operating at a loss, losses are stuck at the C-Corporation level and do not pass to the owners/members.

They seem to think that if they personally screw up their lives, then the American Tax Payer should be financially responsible for their screw up.

Boston - The Internal Revenue Service today announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.Full article:http://www.boston.com/business/ticker/2009/08/irs_warns_of_fi.html :cool: