i didn't realize doing a cash-out-refi doesn't incurr capital gains or is a taxable event. 

So any time in the future you could refinance the free and clear property and use the proceeds (not taxable) to purchase your next income property. 

In other words, what ever amount that was forgiven is reported to the IRS and is income.That means that if you owe $250K on a property, but end up doing a short sale for $150K, then you now have an additional $100K of taxable income. 

An LLC can be taxable in Tx for Franchise purposes.2) Sub to parent liability - the holding company can still be he liable for actions of the subsidiariesThe same result was reached on similar facts in Davis v.

Also, there are tax considerations UBIT, No depreciation expensing to offset taxable income.

Borrowed money that has to be repaid is neither taxable income nor a deductible expense.

You have to pay taxes according to your taxable income and subject to the usual income tax audits.

Since (under current law) cancellation of debt on a primary residence is taxable if the debt is forgiven after Jan 1, 2014, suggest you make some effort to collect the debt this year, then issue 1099-C next year.

The total amounts of what i expensed is maybe like $7000 for three properties and had i capitalized them i still would have had no taxable income.

Should money be invested and pay debts off as scheduled or should they be paid off.If you end up with a taxable estate where is the money to pay the taxes due.Do you have a business partner, do each of you carry insurance to buy the interests of partners, you might end up with a partner who hasn't got a clue if you can't buy them out.Do you need a trust and how will it be funded?