Creating such a trust would raise the chances of audit, and it is true that the IRS might scrutiny a tax payer much more closely in other areas, even tho they may leave your "DST" alone.

He agree with me and the City holding the money, 'hostage' and he mentioned to call and talk to the building inspector and perhaps get a lawyer to send a letter to the City.Yesterday, the City building inspector called and said the same thing as the previous City representative, along with that the Form is for the tax payers not to pay for a demolition of a property.

Jan 15 was when the 4th qtr estimated tax payments were due.So, this sounds like if you just make all your estimated tax payments on Jan 15 you'd be good. 

@Joel OhA taxpayer renting a "dwelling unit", such as a house, apartment, condominium, mobile home, or boat on a short-term basis, from a single room to the entire property, typically reports the rental activity in their individual tax return on Schedule E.

However, a taxpayer who qualifies as a real estate professional and materially participates in his or her real estate rentals may avoid these passive loss limitations and is able to deduct rental real estate losses against other income sources.

Government everywhere is like a parasite that needs a host (taxpayer) to survive.

@Nicholas J Mancini, Any tax paying entity can do a 1031 exchange as long as the entity stays the same from the old property to the new property like @Wayne Brooks said.. 

Or the Taxpayer was repeatedly buying holding for a year or two and selling.

Department of Education “have forced us to cease” operations.ITT was hit hard Aug. 25 by the education department’s mandate, which was made after ITT fell out of compliance with its accreditor’s standards and “put its students and millions of dollars in taxpayer-funded federal student aid at risk,” the department said.ITT last year received 79 percent of its cash receipts from the federal student loan program.The department also placed several other sanctions on ITT, including a freeze on executive compensation and an order that it increase its surety funds from $94.4 million to $247.3 million within the next 30 days.The company said Tuesday that it “exhausted the exploration of alternatives,” which included transferring the schools to a non-profit or public institution."

If you flip on a regular basis (vague term that gives the IRS flexibility to determine if you are materially competing with taxpaying businesses), then UBIT would apply.There is no regular taxation to the IRA, so no income or self-employment tax.