Hello, I’m pretty familiar with the tax liens regulations here in Alabama but I wanted to brush up on quieting the title.

We've reviewed commercial contracts for sellers, foreclosures (as trustee), construction litigation, and a good friend does ad valorem tax protests/litigation.

Greetings BP folks,My wife and I are negotiating a deal in our area for a home that has a tax lien from the city and county.We have been working with the seller for quite some time and were offered the opportunity to purchase the home at a great price, we also have agreed to pay off the tax lien in addition to the purchase price. 

Any tips or suggestions?

I know this is tax deductible, but I'm wondering if I would claim the entire deduction on my 2022 taxes or is this something I spread out over a few years?

If you flip a house with in a year and incur a tax rate, “ordinary income”then does all of your other income from your rentals “long term income”get taxed at the same rate as ordinary income?

The properties are either one street down from each other or are 2-4 buildings next door.Property #1 (Currently live in with my family and I)Purchase Date May 2021Mortgage Balance: $117,898Rate: 3.625%Mortgage payment including escrow: $870.51Purchase Price: $143,000Tax: $3,308Estimate to sell in today's market: $190,000- $210,000 based on current sales in the market this yearHOA: $110 monthly includes Water and building insurance and other maintenance for the propertyProperty #2:Purchase Date:: April 2022Mortgage Balance: $135,756Rate: 4.625%Mortgage payment including escrow: $1,375 (payment normally $1,059 but payment increased due to low balance on escrow because of tax increases)Purchase Price: $148,000Tax:  $4,578Estimate to sell in today's market: $190,000- $210,000 based on current sales in the market this yearHOA: $100 monthly includes Water and building insurance and other maintenance for the propertyRent: $1,400 a month only water is included in rentProperty #3:Purchase Date:: February 2023Mortgage Balance: $118,518Rate: 5.99%Mortgage payment including escrow: $1,315 (taxes have gone up for this property as well)Purchase Price: $132,000Tax: $4,522Estimate to sell in today's market: $190,000- $210,000 based on current sales in the market this yearHOA: $100 monthly includes Water and building insurance and other maintenance for the propertyRent: $1,400 a month only water is included in rentProperty #4: (We were thinking of selling this and take profits but not sure to be honest)Purchase Date:: February 2024Mortgage Balance: $139,408Rate: 6.75%Mortgage payment including escrow: $1,332Purchase Price: $147,000Tax: $4,130Estimate to sell in today's market: $190,000- $210,000 based on current sales in the market this yearHOA: $100 monthly includes Water and building insurance and other maintenance for the propertyRent: $1,350 a month only water is included in rent

Thanks again for the tip, I appreciate it.

Hi, anyone have success with tax deeds in Arkansas via COSL website?

I would prefer to manage everything through the LLC's account for bookkeeping and tax purposes.Proposed Solution:Open a new joint personal account specifically for making mortgage payments.Transfer the monthly mortgage payment amount from the LLC's business checking account to the joint personal account.Document these transfers as "Owner's Draw" or "Owner's Distribution" in our accounting records.Use the joint personal account to make the mortgage payments.Questions:For the CPAs and accountants out there:What are the tax implications of this approach?