@Neil HenningIt looks like you will need to file a partnership return since you acquired the property with a partner/member.You should consult with a CPA who is familiar with partnership taxation.

CPA can assist with the accounting and taxation regarding the LLC.

RichardIf you are just concerned on taxation on the distribution, the distribution is not a revenue or income.

@Brian Babbagebased on your profile you want to have a CPA that specializes in individual taxation, real estate taxation and partnership taxation.You also want an accountant who is familiar with filing of non-resident tax returns as you may have to file in KY, and NC.There are about 20 CPA's who actively participate on the message board and frequently provide value to the members by responding to tax questions/concerns.Feel free to connect with a couple and go with the one you feel most comfortable with.

If so, you open yourself up to a bigger pool of candidates.There are about 20 tax accountants and CPAs here on Bigger Pockets who specialize in real estate taxation and work with clients nationwide.Reach out to a few and see who you like.Good luck and let me know if I can be of assistance.

Is the S Corp a single-member entity with pass-through taxation?

Hello everyone,I am a wholesaler in PA. Just spoke to a title company and the attorney there told me that in PA I am a subject to paying taxes twice. First transfer tax between me and the seller, then the second time ...

Devon:Lots of questions and you would be best served having a chat with your accountant and attorney before heading too far down this road.When you are just starting out, the overhead (accounting, reporting, fees, taxes) of such a corporate structure probably outweighs the benefits.If you hold a rental property within a company (CCPC), the revenue is consider passive and is ineligible for the small business reduction afforded to active income - hence, the company will pay income tax at the full corporate tax rate.  

You might consider sitting down with a CPA first and fleshing out what type of organization and taxation structure is best suited to your personal financial situation, then work with an attorney to put that system in place.

Given that this has been in an aggressive market in a crazy place like CA with their taxation structure it wouldn't take long before it was the recommended scenario to 1031 that - even though they hadn't owned it for very long.