You may need to register as a foreign entity, file a tax return, and pay taxes in PA.

Or maybe there's a special sauce for sloppy tax professionals?

Expenses: What are the operating expenses, including taxes, insurance, maintenance, and reserves?

Here are the details of the property:Property Overview:Location: Texas2 lots, 2 warehouse buildingsFinancials:Mortgage: $4,897/month (balance: $530,000)Insurance: $830/monthProperty Tax: $1,800/monthBuilding 1:1 tenantRent: $7,570/month12,000 square feetBuilding 2:3 tenantsTenant 1: $2,850/month (5,000 square feet)Tenant 2: $1,793/month (2,500 square feet)Tenant 3: $895/month (1,250 square feet)The property was appraised for $2,200,000 three years ago.Given the current rental income and expenses, the cash flow is decent, but my family friend is looking to explore options that could potentially yield better returns.Would it make sense to:Sell the property outright and invest in higher cash-flow opportunities?

I am doing this now and included Seller's transfer tax.

However, I’m hesitant due to the risk of the chatbot going off script and potentially leading to discrimination claims.

If the seller provided dishonest financials or tenant histories, that’s something to investigate further, as it could support a claim for misrepresentation.

I’m also aware there could be tax advantages to running a rental business, which could help offset the shortfall.I’ve had experience with short-term rentals in the past, but I found them to be a headache.

Most of them do not and can even hurt you - as your S-corp with rentals. yeah this was under the guidance of the tax professional i went to.

I know California is still famous for clawing back the taxes owed eventually on a 1031, I don’t know if they are the only state that does it.