Normally you are only entitled to a deduction when you are legally required to make the payment.However, normally people would just list all the expenses on the partnership return and distribute the K-1 to the partners.

Once the 1031 is complete you dissolve the LLC and distribute the assets (property to the individual that wanted to 1031 and cash and taxable event to the partner who wants out.The thing you absolutely do not want to do is to dissolve the LLC and then sell the property. 

Yes I'm fishing a little, but hey I like to fish.All yellow letters say a simple message "if you know anyone interested in selling, please call me at" It was a technique I heard on the second podcast about not being too assertive in your direct mail message.

Income and distributions are two completely different things.

When entering a new market, what is your most reliable technique when reaching out to work with new realtors and why?

Unlike LLCs, in which you can generally distribute property without tax implications, Property distributed via S-corp is treated as if sold to a shareholder for its fair market value. 

Do we just make the wire and note in our accounting that we were still starting up and unsure of how to distribute capital? 

@Autumn WebbIn addition to federal and state taxes, if you are under age 59 1/2 at time of the distribution a 10% early distribution penalty will apply.

However, I have to scrub through all the notices to check if there is any real estate involved in the distribution. 

So would we just put all the funds into the LLC and distribute from their?