Partner B will get $220,000 + the single wide, while Partner A's heirs will get the apartment building and the double wide.They intend to sell one property ( the double wide mobile home ) and use the proceeds to either pay down the loan or reinvest in another rental property (possibly in another market).To defer capital gains tax, they plan to use a 1031 exchange for reinvestment.Goals & Challenges:Tax Efficiency – Structure the transfers and payments to minimize tax liabilities for Partner A’s Spouse and the Children.Guaranteed Income for Partner A’s Spouse – Ensure a fixed monthly payment of $1,100/month while transferring ownership to the Children.Long-Term Investment for the Children – Build a solid rental portfolio to support future financial growth.Operating the LLC Under New Ownership – Ensure a smooth transition, including removing Partner A’s Spouse and Partner B from the LLC structure.Proposed Plan & Questions for Advice:Instead of outright gifting the 50% interest, the LLC will be restructured so that Partner A’s Spouse retains a Preferred Equity Stake that provides them $1,100/month in priority payments but gradually transfers ownership to the Children.Payments will only be made when rental income is sufficient (i.e., when rent increases to $850/unit).Partner A’s Spouse is willing to forgo payments in bad financial times but wants assurance that they won’t face any tax consequences on unpaid amounts.If Partner A’s Spouse passes away before full ownership transfer, the Children inherit the shares at a stepped-up basis (avoiding capital gains tax).Questions:How should the LLC Operating Agreement be structured to allow withholding payments when necessary without triggering tax or legal issues?

The study needs to done for tax filing purposes?"

Not a CPA or tax attorney but my understanding is the commission is income, taxed accordingly and deductions from the purchase are handled regardless of if the agent also generated income from that deal (if there are any deductions at all).

Like Michael said there's no way to know the answers without actually reviewing your taxes.

This exemption is designed to provide tax relief for family-owned businesses, so failing to meet the requirements can add an unexpected layer of tax liability.

Apologies for assuming the worst, but the post feels more like a pitch or marketing content than a standard forum post looking for help or providing subject matter expertise. 

Or we gradually perform high-quality updates for a live-in flip, then roll the equity into a new home.Regarding rental income, we aim to boost income, lower our effective tax rate by generating more low tax-drag income with rental income (since there’s not much we can do to lower out W2 tax bills) and have retirement cash flow.To compare the financial impact over 10-20 years, we want to analyze renting versus flipping.

Once you convert the former investment property to your primary residence you will then start to convert a proration of the gain from tax-deferred to tax free (according to the number of years it was rented/lived in). 

Rentals generate passive income, so an S-Corp offers no added tax benefit.

I've wanted the child Florida LLC to be a pass through entity, so the taxes are paid by parent Wyoming LLC, which is taxed as corporation.Which bank would you suggest to use to open an account for child Florida LLC?