What if an investor wants to invest in a QOF with dollars from ordinary or passive income sources as their initial investments/ contributions into a QOF?

Here is how it plays (Federal only)$10,000 is taxed at ordinary income rate with a cap of 25%$25,000 is taxed at long term capital gains rateCorrections very much appreciated!

Got all kinds of threats from him to make trouble for me...maybe he will, maybe he won't....its a crazy world.Here's a fun gif of this grown man crawling under a patio table to get into the closed off area....

I would say as a take away for anyone debating working on without a permit or purchasing a property with un-permitted work, this circumstance is not ordinary.  

Ordinary income may be subject to UBIT tax which could be as much as 39%.

Flips are taxes are ordinary income in the same year, but rental is not taxed because you are not selling rental each year for profit. and eventually, when you sell, it will have capital gain treatment.

Well now we got the whole floor. 4 br,3 ba- American style- walk in shower- giant kitchen- huge patio.

This might be little confusing, but you might have tax loss, but still have actual cash flow from your rental because of depreciation(known as a phantom expense where there is no cash outflow).There are various stuff that you can deduct.Rather than giving you the entire list, let me say that you can deduct expenses that meet these two criterions: Ordinary Course of BusinessNecessary in the course of businessHere is the list some of the items:1) Mileage: any mileage that is associated with the rental activity.

They are expecting a patio style home where it's all above grade. 

The property is definitely not sold.Now if the landlord obtains a tenant, say signs a ordinary 10 year lease, it is clear he made no sale of the property and no capital gains tax is due.