Can anyone refer me to some real estate CPA with international taxation background and thanks in advance.Clarence Gong 

It could mean a lot of things - but county data is notortiously incomplete and bad, and values for taxation very rarely track actual market value.

How does the government stealing more money through excessive taxation and wasting it (as they always do, see the bullet train to nowhere in California) help anyone? 

@Robert FornwaltYour CPA is the one with all your tax information and would be suited to answer your question...if he specializes in real estate taxation and has a chunk of real estate investor clients.It also does not make sense when he says the "rental income would be a wash". 

You open yourself to more accountants who specialize in real estate taxation if you are open to the idea.If this is not a single-person entity, you may want to find an accountant is familiar with partnership/S-corp taxation depending on the entity you form to choose.

I saw turbo tax at Costco for cheap, purchased the investor friendly version and plugged in the results.

This is called tax territoriality and it determines whether you need a blocker entity taxwise.An LLC can be set up a fiscally opaque entity (causing double taxation through profits and then dividends) or a fiscally disregarded entity in which case it is there for liability protection.Having an LLC gives rise to some declarative obligations for non-residents like f5472 so you need a CPA who knows his non-residents.To give further pointers, we would need to know which country you are from and what type of business you consider.

For the $450 prop that would mean:$100k cash from the current prop + $100k new loan (replacing debt) + plus $250K out of pocket                   ORPay off the $100k loan,  use $100k cash from current prop + $350k out of pocket.Use your remaining cash (my math says $100-200k) as down payments on other cash flow properties (if your goals is to grow your portfolio quickly and let tenants pay off your loans, my strategy), or hang onto it until you have enough to buy another in cash (if you're more focused on maximizing per-unit income and minimizing risk, and don't' mind having capital tied up).If you keep using the 1031 process literally until you die (and remember you can leapfrog from one to several, from small to bigger, SFR to MFR etc), then you completely avoid all taxation and pass your properties on to your heirs with a stepped-up tax basis equal to their fair market value at the time of your death.

@Ian IppolitoThe correct statement would be:"If you are investing in notes with a self-directed retirement plan, be aware that if a note fund is using debt-financing in addition to investor equity, your plan will have exposure to taxation on Unrelated Debt-Financed Income (UDFI)."

Have you reached out to the trustee on his understanding of how the taxation will be done for the trust?