So, that will get distributed to both of your tax returns.Most, perhaps all, of what you spent this year just adds onto the basis and is not deducible.

Generally, all non-rental income is not subject to SE tax.If it is multi-member and no election is made it is taxed as a partnership.If it is single or multi-member and Form 2553 is filed it will be taxed as an S-corporation in which distributions may be made and not necessarily all income will be subject to SE tax.If it is single or multi-member and Form 8832 is filed it will be taxed as a C-corporation which is taxed and dividends will be taxed personally as well.

If there are creditors, the creditor still has to open a probate in determine the heirs, identify and appraise all the assets and then determine how to distribute them.

Investing in Equity is like being part of the entire group that finds the deal (usually distressed property), stabilizes the property and then either sells it or held in the company's portfolio, managed and monthly returns distributed (after expenses are being paid for).

The state you live in has highly advanced hard money lending distribution systems and a lot of California exiles who know the business and have lots of money.At a local lender's trade association you'll find out who the real players are.

If you mean protection for general liability (tenants, visitors, slip & falls), just grab an umbrella policy (~250/yr for 1mil covering ~5 properties, about 100 for each increment mils), simplest thing you can do and beats the couple thousand in fees a professional will charge you.If you want or need to do tax sheltering strategies or optimize estate distributions etc, then definitely go for a qualified accountant or attorney.

Even with a Roth 401k, there are some penalties for early distributions.

I'll give you a quick example of just one technique I love.

Not sure how true this isand also I’m not expert in this topic ( disclaimer ) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Short story , I was at local REI meeting earlier today Conversation was regarding private money It was discussed that individuals our getting private funds ( 6 – 8% ) then taking those funds and offering separate loans to another investors as a hard money rates (14 above % )Pocketing the differences on positive transactionsImportant – I know there laws about distribution private and hard money loansHere how I visualize individuals our performing this type of funding:Sub1 – person who offering original private money ( IRA / etc )Sub2 - let name Johhy B Nasty ( middle guy )Sub3 – person looking for funds , but have no credit / exper. / etcPossible transaction :==============================================Sub2 - borrow money from Sub1 at 7% for 9 months Sub2 - borrow new obtained funds to Sub3 at 14% for 7 months Sub3 - completes rehab, market property, &sell to new home ownerSub3 - pays back Sub2 original loan amount + interest used ( 14 % + rate )Sub2 - immediately pays back Sub1 + interest used ( 7% rate )Sub2 - made interest off of Sub3 rehab deal basically ( the interest rate difference )Everyone happy -> sub1 , sub 2, and sub 3Again~I know their laws & licensing for offering private/hard funds

The issue comes from distributions.