Both are included in your income: AGI, MAGI and taxable income.

...is after all taxable, lest you do a 10-31 exchange, etc.I know it's not cash flow, but at the end of the day, even though you don't realize it until you sell, can one not consider it unrealized income at least until they sell?

Actually, its used to lower taxable income so in many cases it's a good thing(for a home).

The depreciation expense is not an actual out of pocket expense, but it still offsets my net rental income making my taxable rental income even lower.

However, I'm not that motivated to do a ton of paperwork in order to collect highly taxable income.

*Homes in the area sell for 285k to $685K*Prior to running comp, Redfin said that the home is valued at $483,800.I checked other sites also:DC Taxable Assessment: $338,770Zillow: $356,879Realtor.com: $433,000I know its alot of info but I'm trying to understand the wholesaling process.

This is why you loan funds to the flipping LLC as it would not b taxable if you convert it to a rental as long as it is simply to satisfy the loan given to the LLC.

In an audit, it gets very messy because the IRS wants to count every deposit as taxable income and every payment/withdrawal as a non-tax deduction.You are making the right move by opening a business account.

In this same LLC could (should) I run the income / expenses through to drive up our taxable income to help qualify for future mortgages.

Contrasting investing in real estate in a taxable vs tax-sheltered vehicle is an apples and oranges comparison.