The problem is that the law is very clear that such assignments are taxable so you deal with audit issues.

Cap Ex is planning for major repairs, but until the repair happens, that is taxable income in your bank account that you can use however you please.

That way you can invest in real estate without creating a taxable event.

There's always ways to lower the taxable profit amount as well, which you do by finding all the claimable business expenses you've had. 

Personally, I would divert it to the Roth IRA as described before if you are eligible and up to $11k/yr (for you and your wife) and the rest into a taxable account ... then when it builds up enough to do something else with, you can tap the principal to redeploy, or just let it grow. 

I understand that the income from taxes is taxable less expenses.

I'm still looking for my first owner finance deal that makes sense.That being said I've done a lot of homework on the issue - someone can correct me if I'm wrong or going down the wrong path, but I think one thing someone needs to keep in mind when pursuing an owner finance is if the owner has depreciated the property and owned it for some time/has a sizeable amount of taxable recoverable depreciation - that is the one thing they can not spread out in an installment sale/owner finance.  

Because of the way I'm structured and the depreciation from apartments, I show very little taxable income.

The IRS might come after ol' dad for a $150K taxable gift.

Also1) If you intend to hold rental under S-corp for a long time, then you can elect S-corp. however, if you do not, transferring an asset from S-corp to partners for various reason is a taxable event.