The State Department of Assessments and Taxation (SDAT) are the ones who set the value of property based on the market value of similar properties in the area.

That's why I say don't do anything but tax at Big 4.  

One important consideration when investing in an operating business is the additional taxation you'll be subjected to.

For instance, what are the long term consequences of being able to invest approx. 35% (referencing your numbers from above, 10% penalty + 25% taxation) less cash into the initial purchase? 

(D-Los Angeles)- Local Government: Surplus Land Act: exemptions.AB 1764 by the Committee on Housing and Community Development – Housing omnibus.SB 4 by Scott Wiener (D-San Francisco) – Planning and zoning: housing development: higher education institutions and religious institutions.SB 34 by Thomas Umberg (D-Santa Ana) – Surplus land disposal: violations: County of Orange.SB 82 by Seyarto (R-Murrieta) – Property taxation: disabled veterans’ exemption: eligibility letters.SB 229 by Thomas Umberg (D-Santa Ana) – Surplus land: disposal of property: violations: public meeting.SB 240 by Rosilicie Ochoa Bogh (R-Yucaipa) – Surplus state real property: affordable housing and housing for formerly incarcerated individuals.SB 267 by Susan Talamantes Eggman (D-Stockton) – Credit history of persons receiving government rent subsidies.SB 341 by Josh Becker (D-Menlo Park) – Housing development.SB 423 by Scott Wiener (D-San Francisco) – Land use: streamlined housing approvals: multifamily housing developments.SB 439 by Nancy Skinner (D-Berkeley) – Special motions to strike: priority housing development projects.SB 482 by Catherine Blakespear (D-Encinitas) – Multifamily Housing Program: supportive housing: capitalized operating reserves.SB 520 by Kelly Seyarto (R-Murrieta) – Property taxation: homeowners’ exemption.SB 593 by Scott Wiener (D-San Francisco) – Redevelopment: successor agency debt: City and County of San Francisco.SB 684 by Anna Caballero (D-Merced) – Land use: streamlined approval processes: development projects of 10 or fewer residential units on urban lots under 5 acres.SB 713 by Steve Padilla (D-San Diego) – Planning and zoning: density bonuses: development standard.SB 734 by Susan Rubio (D-Baldwin Park) – Property tax: possessory interests.SB 747 by Anna Caballero (D-Merced) – Land use: surplus land.SB 789 by Ben Allen (D-Santa Monica) : Elections: Senate Constitutional Amendment 2 of the 2021–22 Regular Session and Assembly Constitutional Amendment 5 of the 2023–24 Regular Session.

@Arshad HussainWe do not have the full information, but I suspect that your CPA was correct but did not explain it well to you.You were probably trying to eat the cake and have it, too - which is not possible in taxation. 

If the "prize" is the operating income of the business, however, and the business is not a taxable C-Corp but rather some kind of a pass-through entity like a LLC, then the IRA will be subject to UBIT taxation on the income. 

Multistate taxation of pass-through entities is a very complex topic.What so you mean by “Does anyone know what the coverage amount of an LLC is or does it vary from state to state”?

Lenders tend to not think from a solid business perspective, but there are taxation and "book balance" reasons they sometimes do illogical things.It would take all day to cover some of your questions.

If you close on any deals your lawyer would write it out to business but you can just transfer money to whatever account you would want the money...just think if you make money and record under a corp you'll have to pay a tax for that and then if you pay yourself a salary under the corp then you'll be paying an income tax for your self so it's almost like double taxation.