Generally speaking advantageous tax treatment follows.Assuming active participation and AGI is below phase-out, expensed items will reduce taxable income, which seems like mainly W-2 income.Consult with your CPA/EA.

Not sure about legality but I want to say someone has to accept a 1099 for income > $600 as taxable.

There are two elements of taxable income when selling a rental property:Capital gainDepreciation recaptureDepreciation recapture is the process of "recapturing" prior depreciation taken on the property while it was held as a rental.

There's no general rule or percentage like most people throw out.I generally advise my clients that S Corps don't start to make sense until around $50k of net taxable. 

At the end of the year they (IRA custodian) will issue form 1099-R reporting distribution as taxable income to you, which you would have to enter on your tax return and pay tax on.

The reason I ask is that I have need of the money now, but don't want a taxable distribution from the plan until next tax year.I don't see any reason why this would be an issue but wanted some expert opinions.

Prior to 2018 it may have been advantageous to sell the lot to a controlled C Corp as C Corps were bracketed and any net taxable less than $50k was taxed at 15% for federal.  

I know that any distributions from my IRA is a taxable event subject to income taxation, but I just want to make sure that transferring from an inherited IRA to a self-directed IRA does not generate unexpected tax implications (because I'm simply transferring between slightly different IRA accounts and custodians and not taking any distributions).  

Income from sources other than regular operations is taxable.

The book is referring to the passive activity loss limitations imposed by Sec 469.You'll still be able to use expenses to offset revenue, you just won't be able to use a tax loss on the rental to offset other taxable income if you're above $150k in AGI.