Quoting a recent news report (link at bottom of post): "The existing guidance, IRS Notice 2014-21, said that for the purposes of federal taxation, virtual currency is property.

This can be quite complex and you are in essence getting taxed on a tax deferred account (defeating the purpose).As Dmitriy pointed out, having your partner use their IRA to fund the deal as a note and deed of trust will avoid this taxation to his/her IRA so all you will need is loan docs drafted and executed.

And I do like the corp instead of personal for those same reasons:  Limited liability, better taxation, easier for estate planning - can leave the company to kids instead of them having to change name and pay estate taxes and/or land transfer taxes.I did set up the federal corp in case I wanted to buy in different provinces as that was a rule at that time. 

The exemptions discount property tax by "exempting" a certain amount of a home's assessed value from taxation. ...

If you selling it and have held it longer than a year, you are tax at long term capital gains rate. 

I'm considering a 1031 exchange out of New York to a property closer to my location.  Does anyone know if states, especially NY, "honor" the tax deferment of a 1031 exchange?  Or will New York immediately, or sometime...

There are many qualified accountants on this message board who specialize in real estate taxation that may be able to serve you.Since you previously done your taxes using HR Block/Turbo Tax - the accountant you choose should first look at the previously filed returns to make sure they were done accurately. 

Welcome to US taxation!

The best entity for legal protection may be the worst for taxation for example.You definitely should get a local lawyer.

There may be important distinctions with local and state regulations as well as how the IRS treats the income and taxation of the property which requires different tax strategies.