Interest income from making loans is taxable at your ordinary income rate.

My accountant recently provided me with my Schedule E tax return for 2013 and I was surprised to see that my taxable income is far greater than my actual profit.

Originally posted by @Brian Gibbons:If you're interested in Marko Rubel you may want to go on Kindle and he has a few books for two dollars or soThere are no concepts that he teaches that aren't on BP for free Hello Brian , the thing about Marko Rubel which i noticed there , because i watched his webinar twice is that , he is trying to convenience everybody that his business model and strategies of financial solutions are the best through getting the profit by ownership , which is not taxable like as a capital gain , and it is the best model for the real estate growth now compared to the last 5 years of recovery after the 2008 market crash , while the money of wholesaling or flipping are not capital gain are taxable big time compared to that , so those models are not convenient to the current market and it's progression , i wanted to discuss this idea with , i do not think that is absolutely true , any ideas thanks Ehab T   

Unless you want to convert Traditional into Roth, which would be taxable event. 

The contribution of a property into an LLC does not create a taxable event.  

We'll assume none of that was taxable.

This will allow you to fund a business with your retirement funds without taking a taxable distribution.

Question 2: If yes to question 1, are there any time requirements as to how long a mortgage must be in place prior to an exchange so that the payoff is not considered a taxable event? 

@Nicholas Morgan assuming you have a full time job you would need to determine what your taxable income will be at the end of the year and work that into your calculations.

So what ever cash we lending it took us darn near double that to earn it in the first place. its not just a 100k loss it was 140 to 150k in taxable earnings to net 100k to lend  that we are at risk for... another little pearl there !