That would mean a capital gain tax of 200,000 PLUS state tax of 5% = 50,000.Personal tax total: 250,000Total tax on dividend/ distribution = $563,841.This is why it is considered malpractice in some states to advise holding real estate in a C-corp.You LOSE the Long Term Capital Gain Rates with a corp.You will pay tax at the corporate rates:TAXABLE INCOME: TAX:Over But not over Tax +% On amount over$ 0 $ 50,000 $ 0 15% $ 050,000 75,000 7,500 25% 50,00075,000 100,000 13,750 34% 75,000100,000 335,000 22,250 39% 100,000335,000 10,000,000 113,900 34% 335,00010,000,000 15,000,000 3,400,000 35% 10,000,00015,000,000 18,333,333 5,150,000 38% 15,000,00018,333,333 ............ ............ 35% 0Skewed Step up in Basis for HeirsNow, lets say you keep that Rental property in the corporation forever, Yes you can 1031 into something else; however, your kids will not receive much of a benefit as the deemed sale of ANY transfer will cause taxation.

In 5-6 years I'd like to be settled down into a home that my kids can graduate high school in, so what should I be learning about in the meantime?

As a kid, I never had a regular way of seeing my future like other kids.

What if there are 2 parents and 2 kids (say age 12 and age 18 for example).

Needless to say the yard was  shin high in most areas with some weeds, i kid you not being waste high on my (I'm @Brandon Turner size, and I will challenge him to a fight at the next BP summit :)  ).  

Most of their reps are young kids straight  out of college who just got a RE license and are very sales aggressive.

Kidding aside, we've been analyzing why we couldn't find a 5% cap rate in Palo Alto so we started looking in Mountain View hoping to find a diamond in the rough.

., and during the meeting one of the P & Z guys asks if I'd sell him the property because he use to hunt on it when he was a kid.

(I base this on a house that was soaked with dog pee, kid pee & 20 years of cigarette smoke!)

It's kidding yourself, not knowing what you don't even know.