When I hear "active business", I assume this means that I need to pay SE taxes on earnings, can't depreciate, gains/losses are ordinary income, etc.

Steven, I can use the income from free and clear properties to qualify for another loan but big chunk of capital is stuck in free and clear properties and it increases my rental income which is taxed at ordinary income.

In Norway we have [url]www.Finn.no[url], that have it all; real estate agents, car sellers, and ordinary classifieds and other.

I read that the units would be taxed as ordinary income ?

There are rules in place about the plan providing a direct benefit to yourself thru the plans investments, but in most cases the investments would be passive (my plan invests in real estate notes and real estate limited partnership interests). 7- Under current law, the plan withdrawls are taxable as ordinary income.

However, net capital gains on debt-financed property, capital gains on cutting timber, and ordinary gains on sections 1245, 1250, 1252, 1254, and 1255 property are taxed.

Why anyone would want to create an active income business to manage their own properties just to have active income that becomes subject to payroll taxes in addition to the ordinary income tax is beyond me.

Knew a little but not a lot about this topic.With the fiscal cliff they are talking about taxing dividends at the ordinary income rate instead of the current capital gains rate.

Flipping houses is ordinary income and subject to your earned income tax rate.

Your not asking for anything out of the ordinary in my opinion.