Maybe there are legal loopholes that one can exploit,without ending up in the pokey.

I like loopholes as much as the next guy, but I'd love to talk to a few more folks (or your IRS trainer contact) before I'd pull the trigger on this.It's also been my experience that it's not worth the added time and expense to form entities of any kind until you get to a certain amount of annual profit.

Otherwise, you'd be able to devise tax loopholes to get around the passive activity rules that the IRS worked hard and long at developing :) I encourage you to read Hillman vs.

@Amanda Han.I purchased the book package Friday and finished it last night.Very well written and applicable to my situation in a lot of ways.The emphasis on self -directed retirement accounts especially since I converted a conventional IRA to a Solo 401K with@Dmitriy Fomichenko help last year.There is a lot of opportunity there and so many people are not aware of it.They get that glazed eye look you referred to in the book when asking if they have any experience with the self directed retirement options.I now realize I have a jack of all trades CPA.Has no experience with self directed  retirement and does not specialize in investment properties taxation.After tax season I will be contacting you about possibly helping us.Another aspect of your writings that I thought was helpful and enjoyable was writing about real life stories of REI investors relating their tax experiences.There were many stories I could relate to and apply to our current situations.Bottom line is you don't know what you don't know,and that can be very costly to real estate investors.We are blessed to live in USA and I don't mind paying my share of taxes,it's just that I don't want to pay more than my share.And I need to know about every loop hole that I can apply to our situation to leave a legacy for our family.Thanks again for writing this up and sharing with us.I'll share with my buddies so that they can benefit also.

The 401k custodian suppose to send you 1099-R reporting those amounts as taxable income and you must pay taxes on those monies.If you are within 60 days window - you can deposit those funds into an IRA without tax consequences.If you are outside of the 60 days window but within a calendar year - there is little known loophole to make it work, contact me directly so I can explain the details. 

If they don't have financial aid for rent, then the entire semester is due for that payment.I feel like there are a few loopholes in this process.

Then decided there's a loophole.   

I'm currently reading Sutton's book "Loopholes of Real Estate" (pages 184-187) and he suggests transferring using a grant/warranty deed instead of a quitclaim deed.

Home warranties are insurance products and they make money by denying claims or cutting costs.It's been my experience when I had AHS (and others) that they did one or all of the following:Took an extraordinarily long time to address anythingUsed a loophole on page 473 of the contract to deny a claim Sent the cheapest contractor out to shoddily fix somethingI personally had to wait 6 days for a water heater issue at my primary residence which was a very long time without a hot shower. 

If the question is, how to get around it legally, there's only one small sliver of a loophole.