Moved a couple walls, remodeled two bathrooms, added a third bathroom, remodeled kitchen, new windows and doors, added a window, resurfaced pool, landscaping front and back, added a back patio area, interior and exterior paint, roof repair, termite treatment, new flooring throughout, etc, and some surprises when opening up walls and floors.Sweated for a month with no offers then got 2 full price offers the same weekend.    

S Corps and Partnerships distribute "distributions" which generally speaking aren't taxable as long as the partner/member/shareholder has tax basis in excess of the distribution.The tax on Box 1 ordinary business income can't be deferred via IRC Sec 1400Z-2.

Hearing success stories from ordinary people motivates me more than horror stories scare me. 

Yes, it's the ordinary rate schedule capped at 25%.

Business = ordinary rates + 15% SE tax.In case of a rental, you owe capital gain taxes on the 20% of the $30,000 down payment.Both scenarios above are over-simplified.

This is where things get a bit vague and subject to interpretation, and why we urge caution when considering such transactions.Benefit would include things such as one party being enabled to participate in a transaction that under ordinary arms-length scenarios would be out of reach.

Outside, the husband, who is a friend of mine, had been getting some estimates on replacing the patio concrete & bricks / built in bbq as the patio was in disrepair.

Gains from flipping are ordinary income.

Saturday, January 18th, 4PM, at the Venice Grind.Here is the link for the coffee shop: http://www.venicegrind.com/Venice Grind has a back patio that is apparently really cool and sounds like a great spot for us to meet.

I thought LLCs were generally treated as pass-through entities by IRS.The only tax advantage I can think of would be if the LLC was taxed as an S-Corp and some of the income was distributed to me from the S-Corp as dividends which are taxed at a much lower rate than ordinary income.