@Linda MalavetThere is a special rule regarding taxation and collecting rent payments.Rent payments are normally taxed in the year collected.Therefore - I am not sure what the tax difference would be from having a 35 month lease vs a 36 month lease.

I know that any distributions from my IRA is a taxable event subject to income taxation, but I just want to make sure that transferring from an inherited IRA to a self-directed IRA does not generate unexpected tax implications (because I'm simply transferring between slightly different IRA accounts and custodians and not taking any distributions).  

Since this LLC (or LLC's if you create more than one) would be a 100% child subsidiary of your jointly held Canadian corporation, retained earnings in the U.S.A. entity can be repatriated (on your schedule) to the parent while attracting little to no additional taxation from the CRA.  

How does taxation work in this case if we both form a single person LLC? 

@Joshua Callanan In Maryland, I go to the Department of Taxation website and search the legal entity search.

Income from passive investments would be sheltered from taxation in a 401k.

As far as I know, there's not been major changes to the tax laws on this since.There's several situations that leads to taxation of the boot.

@Li TolentinoThe matter should be discussed with your CPA.An IRA has exposure to taxation in two situations. 

The ROI differential of putting $40K into a $100K property as opposed to putting $100K all cash into the same property will be significant, and that few hundred dollars of taxation plus the cost of a CPA to do the IRA tax return will be a small reduction in the benefits of using leverage.

The only way I have been able to find them is by using the Maryland Department of Assessment and Taxation's Real Property Search:  http://sdat.dat.maryland.gov/RealProperty/Pages/de....