If the LLC can elect S-corp treatment, doesn't this level the playing field in all regards related to taxes?

What is described above is similar to the tax treatment of wrap notes where the IRS wants to ignore the installment basis and tax all of the phantom gain in year 1.

That would not allow you to treat them as business expenses for this year, but add to your tax basis.Even if they were indeed separate, because they happen within a short timeframe they could be deemed to be part of one big project.You need to be careful to document them as separate repairs to the property.It sounds like this could be difficult due to the size of repairs that were done.As Charles points out you can definitely split the depreciation and have items like flooring, appliances, window treatments depreciated over a much shorter timespan.

He already paid for the termite inspection and treatment, I paid for the smoke alarms and CO detectors and the permit fee to get the town inspection.I don't know what the actual amount escrowed at the seller's attorney is because they changed a bunch of things in the addenda.

*I do not agree with every price on the list but it's a good start*CLEANINGClean refrigerator 70.00 Clean stovetop 30.00 Replace stove drip-bowls 28.00 Clean oven 50.00 Clean stove hood 30.00 Clean kitchen cabinets 45.00 Clean kitchen floor 50.00 Clean tub/shower and surround (ea.) 30.00 Clean toilet and sink (per bath) 20.00 Clean bathroom. cabinets and floor 25.00 Clean carpets (per room) 75.00 Vacuum throughout dwelling 40.00 Window cleaning (per unit) 11.00 Clean greasy parking spaces (ea.) 25.00 Clean fireplace 35.00 FLOORING Remove carpet stains 80.00 Cigarette burn in carpet/floor 80.00 Deodorize carpet 80.00 Repair carpet 150.00 Repair hardwood floor 95.00 Refinish hardwood floor 380.00 Repair linoleum 85.00 Replace bathroom linoleum 385.00 Replace kitchen linoleum 385.00 Replace floor tile 75.00 Replace ceramic tile 150.00 WALLS Remove mildew and treat surface 25.00 Cover crayon/marker/pen marks 35.00 Repair hole in wall 55.00 Remove wallpaper 145.00 Repaint (per wall/ceiling) 20.00 DOORS Repair hole in hollow core door 55.00 Repair forced door damage 75.00 Replace door (inside) 155.00 Replace door (outside) 285.00 Replace sliding glass door 775.00 Replace sliding door screen 65.00 ELECTRICAL Replace light bulb 2.50 Replace light fixture globe 12.00 Replace light fixture 55.00 Replace electrical outlet/switch 12.00 Replace electrical cover plate 5.50 PLUMBING Replace kitchen faucet 195.00 Replace bathroom faucet 195.00 Replace shower head 24.00 Replace toilet tank lid 45.00 Replace toilet seat 35.00 Replace toilet 265.00 Replace garbage disposer 125.00 Snake Toilet 45.00 Clear sewer/cesspool line 95.00 WINDOWS & TREATMENTS Replace window pane 75.00 Replace Venetian or Mini blind (ea) 75.00 Replace window shade 15.00 Replace window screen 25.00 Replace Vertical Blinds (Sl.

There is no difference in the tax treatment. 

settlement services" is later defined in the memorandum as "Title searches, Insurance, Broker services, preparation of documents, escrow and pest control activities".See also this excellent treatment of the topic. http://www.brewerfirm.com/articles/article-splits-kickbacks-fees.html The issue of Options and "Equitable interest" is not covered in the above.

We include a bed bug addendum with the lease, basically saying there are no bed bugs in there now and if they bring them in they are responsible for the cost of treatment...

But working from your list:Escrow fee ----Title insurance owner --seller provides title policy to buyerTitle insurance Lender --buyer pays this endRecording fees -buyerAccount Servicing Set up fees -junk fee, GWBush should payAccount Servicing Service fees -same as above(monthly, quarterly, etc) HOA transfer fee if any -buyerTermite Inspection/treatment -inspection buyer, treatment seller-I think in some areas state law may govern thisSeptic Certification -seller usuallyBuyer’s Home warranty -Realtors always tell seller this will really help their house sell quckly, it's a ripoff (generally), if buyer wants it tell him to pay for itSurvey, if any-if its required for the loan the buyer pays, if the bank will accept my old one I'll let them have it.New Loan charges -anything having to do with the loan is on the buyer/borrowerDiscount fee Loan origination Credit Report Appraisal MIP VA Funding Fee, if any--the VA may have some rules on thisNew Hazard Insurance Premium Congratulations on the sale.Frank

Nice fixtures,but cheap, and try and find fixture covers that will not break when the tenant drops it while replacing a bulb.No horizontal blinds but rather vertical blinds where we must provide window treatments, and always the same manufacturer so that we can maintain a stock of replacement parts.