These intangibles generally have a tax basis of 0 if self-generated, but the FMV is likely much higher.It helps to think of the individual as operating in two distinct and separable capacities here with respect to his or her S Corp. 

I didn’t grow up in a financially savvy household, but even as a kid I remember having a distinct awareness and understanding of supply and demand and its impact on prices.

I didn’t grow up in a financially savvy household, but even as a kid I remember having a distinct awareness and understanding of supply and demand and its impact on prices.

I appreciate the distinction you made.

If there is no loan, you can pull the equity out, but both parties would probably have to sign for it though. it seems that  the property is owned 100% by the LLC, and you own 25% of the LLC. this distinction is important to remember.

That money does not get paid to you unless there is a corporate resolution authorizing you to draw a salary.With those two key steps you should be able to keep yourself and your business entity as distinct individuals for purposes of liability.Also, I would like to echo Mr.

HUD has a clear distinction and if your intent is to use the property as a primary residence for a period longer than a year then you are not an investor to HUD.

Thanks for the distinction. 

The distinction is the type of income offset by the credits due to your classification or activities (ie whether your activities are passive/non-passive).

That is a big distinction wouldn’t you agree?