We will have to pay the underlying mortgage (this is a wrap note) if the tenants failed to pay so it isn't a completely free lunch.My question is whether or not this will somehow be considered a "gift" from a taxation standpoint.

Group LLC, Deleware or Wyoming based which is held by an Australian Discretionary trust - This will be treated as a corporation for US taxation and as a consequence the LLC will be treated as a corporation.Subordinate LLC's - state based which will be the entities that own the properties.Money sourced from LOC in Australia at an interest cost of about 8%.The issuesThe properties should all be massively cashflow positive at a gross 20+% returns.

Perhaps an LLC electing taxation as an S-Corp. accomplishes the same thing, but check with the pros.

A CPA is not required to take any CE in taxation after they have their license...

All I was trying to say is that increasing the amortization period instead of decreasing the interest payment could help to avoid imputed taxation in some instances.

So, you'll have a bit of tax, but less than $100 even if you're in the 33% bracket.If you do the property management and some maintenance, I think you could bump up your income by $75/unit/month or $900 a year, for a total around $2700/unit/year (pre-tax.)At 25% down, that's $7,500 per unit.

One; How do we go about transferring the cash without heavy taxation i.e. red flags.

Depending on additional taxation issues, repairs, and (in this economy) the potential for eviction actions/nonpayment it may be a better option to have lost out even the EM than your shirt.

Don't get me wrong, I love and own real estate.But it sure makes an easy target for politicians: as in taxation, nationalization, rent control, and so forth.

They are for the links for the statute--Taxation---regarding the Delinquent Tax Sale Process.