Mort interest, re tax, as well as rental related expenses... bug spraying, maintenance, yard care for that half ect The improvements you made to the duplex get added to it's basis and depreciated over the 27.5 years just like the property. 

Your father in law would potentially be looking at gift tax, capital gains tax, as well as transfer tax on the sale.

Also, from my experience working in real estate tax as an accountant, most clients tend to adopt an LLC "tree" type strategy where they keep property in one LLC, and have it managed and owned by a separate LLC.

Is 24% pre tax a good return on a flip ?

When utilizing turbo tax, a capital gain of $65,550 was used for calculating taxes.  

Property tax: As I mentioned I've seen residentially zoned properties that are property tax designated as a 'commercial' millage rate.

To facilitate that process, they enter into tax treaties where they clarify how they will tax a foreign citizen that invests in their country.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

Quick one,I understand profits from wholesaling activities are tax as ordinary income; but, is there a way to minimized the taxes that one needs to pay from money earned in wholesaling?

A 1031 will let you use that deferred tax as well for your next purchase.