They aren't tenants, and require so much more forethought in regards to zoning, taxation, and guest satisfaction.

One question that has constantly been lingering on my mind is, how is the taxation going to work at the end of the year as we dont plan on forming a LLC for now.

One is entity formation, the other is entity taxation.

Person B may pledge a person guarantee if they like.2 - Because person A's IRA is receiving income that is derived from the use of debt financing, the IRA will have exposure to UDFI taxation.  

Just do that.Upkeep: Assume you'll be paying 35% of your property income AFTER debt service and taxation.

You simply cannot use IRA funds to flip houses in your own name.If the IRA capital is being used to flip houses, all returns go to the IRA and gains from that type of trade or business activity are subject to UBTI taxation.  

It will likely benefit you to file a nonresident tax return as the income tax tends to be less than the composite tax (meaning you would receive a refund).I would advise working with a CPA that is very knowledgable of Ohio pass-thru entity taxation law.Nathaniel Busch, CPAGahanna, OH614-475-7560 

These run me $75+tax at First Am Title.  

Then you also have your currency conversion issues and entity creation and taxation holdbacks for international tax agreements.All of this really puts you at a strong disadvantage.

Because you write off so much stuff, your taxable income is lower - which is a great thing from a taxation standpoint.