A "Conforming" loan is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names).

Let him finish. 1) He's innocent until proven guilty in a court of law.

Here in Colorado we have already proven MJ legalization and the boogie man does not exist.

Without the depreciation recapture rules under, the $10,000 (sale price of 10, 000 - your basis of 0 ) gain you recognized will be taxable as capital gain under at a maximum rate of 20%.Thus, the sale of the machine in Year 2 would increase your federal income taxes by only $2,000 ($10,000 × 20%) (and would not be subject to self-employment taxes).

I recognize there is tremendous risk in pursuing a development and lots of possible pitfalls, but we hit the jackpot with the location and to us represents once in a lifetime opportunity to remain owners in a prime parcel of urban city property that every person I have consulted with in real estate has agreed should be held on forever given its appreciation potential. 

Hey @Steve Watson - Without getting into a long winded explanation which should really come from an accountant, I can tell you that if you use a cash basis for your accounting (rather than accrual) you recognize the income when it is received rather than when the sale is made. 

Understand the numbers and how to analyze a deal so you can easily recognize a deal when the opportunity arises.Two great books that I recommend on the topic of 'general' investing include Richest Man in Babylon and Set for Life.Happy investing!!

The REO stigma is a measurable value that banks recognize as a discount seen in the market once a lender has taken the property back. 

However we are the number 1 seller in the greater Cleveland area so it has proven to be the most effective method on the planet to moving investment property in the Cleveland area.

At that point if you purchased the property to flip it the cost of renovations, repairs, apoliances, etc... would be capitalized as WIP inventory and then recognized as cost of sales once the property is sold.If you are not a real estate professional and you aren't actively flipping multiple properties per year (specific number is a gray area) then you would still have long term or short term capital gains.