Since it says "If, on the other hand, the foreign investor is engaged in a U.S. trade or business such as the developing, managing and operating a major shopping center, the rental income will not be subject to withholding and will be taxed at ordinary progressive rates." 

When your leveraged rental property generates a taxable income, you pay ordinary income taxes on that amount (not the NOI) regardless of your W2 income.  

If classified as a dealer (business owner) your flip will be subject to your ordinary rates plus SE tax (15.3%).

You have to keep the house for 1-2 years to get the benefit of capital gains taxes rather than ordinary income taxes (15% vs. something likely higher for your ordinary income).  

There are various stuff that you can deduct.Rather than giving you the list, first, let me say that you can deduct expenses that meet these two criterions: Ordinary Course of BusinessNecessary in the course of businessHere is the list some of the items:1) Mileage: any mileage that is associated with the rental activity.

Yes you can deduct necessary and ordinary expenses (inspection for other properties) under LLC.Creating LLC and and transferring deeds won't take that long but please check with your title company for deed transfer period.

Worst PM everthey gave wrong address to tenant to send cashier checks - gave the old address - they claimed old office got it and is forwarding it  for 2months and then I insisted they give a clear answer - then they start eviction process - tenant contacted me and showed me proof - so I stopped eviction - but they charged me $800 as they claim process was startedimpossible and never cold talk to the PMthey changed my ac - got a new one that dint fit in the space for ac so they installed it out side in patio with out telling me - then HoA asked me to move it and for that move they charged $4000

Ordinary Course of Business2.

It will be taxed as ordinary income either way and flow through your personal taxes.   

When you flip real estate you realize income on the sale of the property, and that gets taxed at ordinary income tax rates.