This will be ordinary income an subject to SE tax typically. 1031 only qualifies on passive investment income -IE sale of a rental. 

Guessing about how an appraiser will come up with an ARV is also out of the ordinary for a loan officer.I would tell the loan officer that you will wait to see what the appraiser comes up with and avoid any monkeying around with the numbers on the executed contract based on speculation about the appraisal.

If you are able to implement a real estate professional status tax strategy (REP) you can use passive losses from syndication deals to lower your ordinary W2 income.

As a result one holdout can delay or even kill the sale of a property, the restructuring of a note, or any number of specified significant events not in the ordinary course of business operations.  

Mortgage interest on an investment property is deductible only against investment income, not ordinary income, meaning you’d have to pay taxes on your full 100k of salary income.  5.

Gross profit: $211,500 - $189,000 = $22,500.Taxes: Ordinary IRS income on $22,500, + SE fica taxes and state income taxes.

Just wondering if anyone out there has had experience buying from a VA bank and if there's anything out of the ordinary that I should be aware of.TIATamara

Furthermore, in this economic environment, I will definitely suggest for anyone to try to look into replacing their ordinary income with a source of passive income, and I do think that real estate can get the job done. 

If he eliminates 1031 exchanges and increases the capital gains to ordinary income, no one sells.

Anytime you do something out of the ordinary, you’re always going to have people like that, and it’s always the closes one to you.