Net taxable income $425.00    federal tax at 15% 63.75     Net to me to keep $361.25If I hire a plumber$128 labor$150 for toiletso:Rent $500Plumbing bill $278Net taxable income $222.00     federal tax 33.30    Net to me to keep $188.70If I hire out the labor, I would pay less taxes, but the fact is still the same, whatever I pay for labor comes out of my pocket. 

>I would consider an investor who personally/passively nets over $200K/month to be a Mogul.I am almost to half that rent, but my cash flow is $hit (my household income last year was poor and we gave away almost 50% of our taxable income).  

So how do we negotiate from a position of strength with a bank, when we do not have the ability to show him tax returns with any taxable incomes, or the ability to plunk down a huge equity investment?

It's considered a taxable corporation in Canada.

It makes a huge difference on your 1031 exchange and could leave you with a taxable event.  

The taxable value will be higher than the purchase price.

It would give her full control over investing with the plan, so long as all investments are done at arm's length.If she is not self employed, then an IRA based self directed plan would be the right path.Either way, she is looking at taxable distributions from the plan if she chooses to personally take a distribution of plan funds.

@Bryan Otteson taking over the LLC will still be considered a taxable transaction.

Buy this one over here instead, because even though you are out of pocket hundreds of dollars every fortnight, you get to claim those losses against your tax return, so that your actual taxable income will be lower"!

If no one else is sending him 1099s, your one 1099 is  not going to be enough that it is likely taxable.