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?

@Steve C.Does the current accountant you have specialize in real estate taxation?

Using LLC (partnership or disregarded entity) is usually tax neutral. in fact they don't pay tax at all, their members do. 

Hi, new to BiggerPockets and was not sure where to post this. I am trying to sell a house for my parents in New Jersey who are not citizens of the United States. I am the durable power of attorney and am a citizen. Th...

However, be aware that you will face double taxation.

@Tamiel KenneyeQRP is simply another name for a Solo 401(k) plan.This thread is specifically about an existing Roth IRA, which cannot be rolled over to a Solo 401(k).That said, for certain investors who have qualifying self-employment, the Solo 401(k) can provide advantages in terms of higher contribution limits, strong Roth features in addition to tax-deferred savings, and the elimination of taxation on UDFI generated from debt-financed real estate.

@Steve KirschYou may need to file a non-resident state tax return if you have an investment property located outside of your resident state.States try to avoid double-taxation by providing you a credit for taxes paid to another state.However, rental properties may calculate a tax loss which does not require a tax being paid to the other state.