Doug:That's a grey area ... at least in Canada.  

All wrote a very grey response that indicated they while they could not give permission they didn't watch it either.

Meeting at the Grey Lodge Pub with a few investor at 3pm today. 

Land is always a grey area, unless it's clearly black and white like down town.

However very grey, FREC is pretty clear anyone marketing, showing real estate to make money must be licensed.I have so many buyer leads its easy to keep my pipe full however very time consuming and that is what i am trying to get back in my life.

Gary if you call your DRE and ask them anything that is a GREY area then there is almost 100% chance they will say NO you can't do it.

Steven this strategy was put into use about 4 years ago.I haven't seen this in awhile.When the government has loopholes and other known problems they sew them up quickly.Years ago it was seen as a grey area.Today they are definitely tagging it as fraud.I never did any type of these transactions but did hear they were occurring.I would stay clear of these types of strategies in today's environment.

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I'm going to treat that like your profit, but it may not be because, as others have said, your cash flow is not necessarily your profit, particularly where you have a mortgage.So you'll report your rental income and rental expenses (these are only expenses AFTER you put the property into service - ie, it was rent ready) on Schedule E.You will then figure your gain on the sale as follows:Sale Price minus (Purchase Price + Remodeling Costs) It's a fairly complicated process to separate out what is deductible in the current year as a rental expense and what needs to be included in Basis and which expenses you might have had that are a grey area and could go either way.  

@Kyle GodboutI think you are getting into a grey area...