Wholesalers skirt around it with this 'equitable interest' nonsense, but little by little, the states are closing that loophole.

I realize I may be trying to take advantage of a loophole here but MA sales tax of 6.25% would be nicer in my pocket. 

Garrett Sutton has some great books " Start your own corporation " "Run your own Corporation " and "Loopholes of Real Estate" They are part of the rich dad series of books.

I do all my taxes on turbo tax so I try to find all the deductions and loop holes I can.

I wouldn't put it past B to threaten me with a small claims court suit over the money, and I'm nervous that some loophole or nitpick detail is going to bite me in the behind.

This is a loophole in the system.

I know they seem similar on paper but there is a loophole that the s-corp gives you with social security and medicare taxes.

There is no loophole you can think of that will change that.

Now, if there is some legal loophole that permits otherwise, then by all means take advantage.That said, the premise is flawed from the get-go.

At least if you have the attorney draw it up and a loophole is found you have recourse against them.Adding it to an S-corp is not a good idea, you are better off keeping it separate and NEVER combine it with another business if you want protection.Ideally you don't want rentals owned by an S-corp.