I moved to San Diego from Sao Paulo, Brazil back in 1998 when i was 21 years old.

A single member LLC is taxed as a disregarded entity unless an election to tax as a corporation is taken.

I can tell you this1. you will pay tax as if you had earned that $200k from your job unless it is a Roth.

I've been reading through tons of past articles and I understand the mechanics of this, save one thing.I created an LLC (A), will tax as an S-Corp, for all of the business activities associated with house flips.

That might put him in lower cap gain tax bracket and also avoid 3.8% NIIT tax as well. 

Other-party-profit-fixation is a reality that seems to plague every newer investor (myself includedit seems like she already sold it and made $42k   Of course with a flip you’ve got your 14% SS income tax as well as stated and federal tax. 

@Kathy Moser if the owner died, most likely they will inherit the properties at stepped up basis, which means no capital gains tax. As

The taxes are definitely something to watch for here, and I didn't know about the RITA tax as well, which is higher in Cuyahoga county. 

Property taxes ( I don’t know Denver’s), but for as long as you live here no state income tax ( as you know).Lastly we are no longer a 1% town (.8-.9% is a good deal right now ) Hope the positives help sway you to the great state of texas!

Flips are not exchangeable, though -- you will pay tax as normal income.