Whatever your partner received in excess of his capital contribution will be a taxable gain for your partner. 

Excess of stock basis is capital gain.To avoid distribution excess of basis, shareholders can inject more capital into the business.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

I am currently 37% tax bracket and all passive activity losses are void for me (IRS form 8582).However, it states that “unless the taxpayer is a real estate professional”, leading me to think one can capture RE losses/passive activity losses when they AGI is in excess of the current limits.

You have young guys in bay area that get stock options worth in excess of more than 3-4 million dollars, of course theyre going to be spending a lot of money.

It's then taxed as a capital gain, excess above zero basis.Laureen Youngblood Yes your strategy is dangerous.

At foreclosure if the property sells for more than what the lender is owed, the husband may make a claim, also the wife still has an equitable interest to claim excess amounts owed the lender, this may be by suit in "courts of equity" depending too on the state being a lien state or title state. 

I'm not an attorney but from what I understand it limits risk to the property, pushes the risk into the operating company which should be burdened with excessive amounts of debt anyhow..adds an extra layer of liability insurance..and ensures there are at least 2 corporate veils to pierce. 

Hi @John Hickey,It sounds like you will have met your reinvestment requirements if you can close on both your original purchase of 1,375,000 and a second property of $200,000, except for potential excess cash due to the increased amount of debt from your hard money loan. 

We are replacing bedroom carpets (rest is hardwood), had to do some heavy duty scraping (travertine tile floor and the goobers that did the grout did not wipe the excess off the tile at all) and deep cleaning in the bathroom (tub was BLACK on the bottom!)