The member generally is taxable on it even if the member receives no distribution.

Since we have no idea about deductions, exemptions or credits, lets go with $175k Taxable Income.For Federal (using Form 1040), you would pay $36,247, which is an effective rate of 20.7%For our state of GA (using Form 500) you would pay $10,240, which is an effective rate of 5.85%Social Security would be capped at 6.2% of $117,000 so taxes paid is $7,254Medicare tax would be 1.45% on all income, so tax of around $2,537

home insurance deduction per property = $7500 taxable income reduction.Add $1000/year (low-end) property tax deduction per property (local taxes in Charlotte, NC for 100K home) = $15000 taxable income reduction.

With a good rental (tougher and tougher to find around here), you will still have taxable income.

Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient.

The gain allocated to the rental use (non-qualified use) will be taxable and the gain allocated toward the primary residence use (qualified use) will be tax free up to the $250,000/$500,000 limit.And, remember that the 121 Exclusion ($250,000/$500,000) does not exclude any depreciation recapture; it only excludes capital gains up to the limits.

On the other hand, if I did not have the expense at all, then my rental income is still taxable and not offset by either a repair or depreciation expense.

I mean, it would take up most if not all of my liquid capital that wouldn't require some kind of taxable event if I have to cover the construction as well.

Specifically, I am interested in how to receive the money from the lender account to my own to make the purchase without Uncle Sam seeing it as a taxable income.

She had $0 taxable income in 2016, but now has a full year of taxable income in 2017.