., to bring in $1 under the Fair Tax for every $1 in current embedded taxes), the tax would have to be greater than 30% (tax exclusive) on every purchase.Despite the higher income each person would generate, the exorbitant tax on each purchase would likely reduce discretionary spending; on top of that, you'd have double taxation in many circumstances -- for example, when you buy a house, you'd pay a 30% tax and then pay another 30% tax on your mortgage interest payments.Personally, I don't mind the Fair Tax, as it ultimately plays out as a regressive tax.

Hi All.Is there any benefit to setting up an Single Member LLC in a state where there is no state income tax (and my current residence so I have an address) to hold properties from a state with an income tax? As

HELOCs should pay that tax but you better check with them first.There should not be a Transfer Tax, those are on Sales of a building (or home).I think you must mean "Mortgage Recording Tax."A

OK so it seems that we determined that the rule for the $800 franchise tax as far as CFTB is concerned is whether a company has a CA owner, not whether it actually does business or not in CA.

I calculated the cash flow of about $125 a month based on your number and the assumption of insurance being $1200 a year, 10% vacancy, $800 property tax a year and 0 PM cost. 

I'm looking to buy an apartment/hotel in Sao Paulo while the currency is in crisis.

Assuming Will operates out of an S-Corp (he's a smart guy so I'm positive he's doing this) and nets $350k, by deducting his lease payment he avoids 15.3% self-employment tax, a 1.5% CA franchise tax on net income, a blended CA income tax rate of 7.98% and a blended federal rate of 26.1% for a total of 50.88%.

@Matthew Pinkston, The strategy I'm referring to is allowing a multifamily property (4 or more units) to qualify as a residential property for property tax as opposed to the commercial rate which is close to double that of the residential rate.

You will receive the funds after the first of the year so they will show gain recognition in 2016 and you will pay the tax a year later in April of 2017.  

@Geoffrey Hoffman  wow with tax rates like that I can certainly see why the values remain relatively low and really don't move much in a market like that... do you have sales tax and state income tax as well... you can see also why an area like that would be so heavy to renters no need to own.. with tax rates like that...