Can Only a PART of paid OPTION Consideration Funds be NON Taxable ?

When purchasing your mother-in-law's house through seller financing, since the property qualifies as her primary residence, she should be able to exclude up to $250,000 of gains ($500,000 if married) from taxable income, so capital gains taxes are unlikely to be an issue given the sale price is below the tax basis.2.

You diligence needs to be trying to pull out if your operator has some competitive advantage that will let them eke out marginally more returns for you, to more than offset the additional fees you are incurring.Of course, with a 1031, the analysis is slightly harder, because you have to factor in the tax savings you are getting through your 1031, relative to taking sale proceeds as taxable and investing in a group that may have lower fees.

Both you and the related party must hold the properties for at least two years after the exchange.If either party sells or disposes of the property before the two-year mark, the IRS could disqualify the exchange, making the capital gains immediately taxable.

distributions from an LLC are generally not taxable events. 

Loans are not taxable.

In general contributions into and distributions from an LLC to individual's names are not taxable events. 

This approach can be particularly beneficial if you want to reinvest the income or use it to offset other taxable income.Cons: Properties with lower purchase prices may be in less desirable neighborhoods, which could mean slower appreciation and potentially higher maintenance costs.Appreciation Properties:Pros: Investing in more expensive properties in better neighborhoods can lead to significant appreciation over time.

If you were to use IRA money to purchase real estate with recourse debt, then a portion of your returns may be taxable.

A 1031 would allow you to use the taxable gain on the property you would have to pay, to purchase another or multiple investment properties.