You would cut yourself a small salary which would be subject to Self Employment tax and treated as ordinary income and the rest as a distribution subject to capital gains rates.

Treat the situation accordingly and be a real estate professional.

Robert that is child's play.What you have is a cleaning party and paint.I consider your property left in nice condition compared to some of mine.I will say from your outside A/C unit you could use a chemical clean to the coils for better air flow.I personally treat this like a business.

Its not the carpet that's the problem, it just doesn't get treated well by tenants.I'm trying some laminate in one unit now, but I'm not sure how it will hold up long term.

I would have the current owner get them out before closing.The tenants now are being nice because they are not paying rent.What happens when you buy "as-is" with the current tenants and then are not nice and go to evict them.They can cause thousands of dollars in damage and leave you a ton of trash to clean up because they are angry at you.I would much rather have the current owner evict them and then if there is damage I can drive down the purchase price even further to compensate for it.People need to see that you are not just a person but a corporation.The building I have I filed for eviction on many tenants.Previous landlord would flip flop and listen to the sob stories.In return they talked trash about the landlord and treated the building in the same manner.My PM let's them know a corporation runs it now and there is no negotiation or excuses.You simply pay the rent or you will be evicted IMMEDIATELY.You did not create these people's lives or situation.At the end of the day we all have bills to pay and people to answer to.I have had tenants tell me they have no money yet pull up in a Cadillac Escalade and have a Sony 55 inch flat screen in the living room.They have the money they just don't want to alter their lifestyle to pay the rent.That's fine with me they will just be doing it elsewhere and not on my dime.

If there is no continuity of obligation, i.e. if no borrower on the outstanding loan that will be satisfied through the new loan is also a borrower on the new loan; the transaction must be treated as a purchase.

If there is no continuity of obligation, i.e. if no borrower on the outstanding loan that will be satisfied through the new loan is also a borrower on the new loan; the transaction must be treated as a purchase.

One question I can't get answered however is: Will you have to treat the Credit$ as Income on the following years tax return??

Whether or not you need a federal tax ID depends upon how you chose to have your LLC treated for federal income tax purposes.

Treating the symptoms as the disease rages on is completely pointless.In the 1980's about 63% of the US economy was consumer driven, in 2007 it was over 70%.