As far as taxes go that's definitely something to consider because it's taxed as active income on a flip compared to a buy and hold which has more favorable taxation.

I find it a great challenge finding deals for under 75% , also with a very high property taxation in Dallas the 75% rule make it even tougher!

@Charlie MooreTaxation is very broad and there is not one person who can specialize in everything within taxation.Very similar to medicine/health.You wouldn't want someone who practices general health for children to also be the one who does open-heart surgery.There are a couple of accountant's on this message board who specialize in real estate taxation.

Wyoming is by far the best state for taxation, asset protection and more.

., I was told by a real estate investor friendly accountant (investor himself) that he has all his properties under a company.But I might be looking at double taxation if I decided to do the same.

@Jordan McNellySee if you can get some experience working with a firm the specializes in real estate taxation.

You are eligible to utilize suspended losses in the event you sale the property.You can reduce the taxation of boot by suspended losses.

If the economic reality indicates that a sale has taken place and the benefits and burdens of ownership of the land have been transferred, the transaction will be treated as a sale, resulting in immediate tax consequences (i.e. gain on the transaction will have to be reported right away).If the true option exists, For the seller, the main tax benefit is that you receive the amount paid for the option without incurring income tax at that time.

@Steve Bruza - your post brings into discussion multiple aspects - asset protection, property management, financing, mortgages, transfers, DOS, accounting, taxation, corporate maintenance, veil, estate planning, insurance - all with their individual complexities and interconnected dependencies and intricacies.

They could also be used to invest into short term rentals, but there is a potential for taxation and prohibited transactions that would need to be navigated.