High tech salesman can make $500K.Doctor barely got a 1.3M home with an in-law quarter.

This property was a manufactured home on an acre-and-a-quarter out in Apache Junction.  

It changed to a blanket exclusion of taxation on the first $250K or $500K (single / married.) 

We tell our clients that if you hold your property for a year and a day from any point in time, you'll be in one tax year when you buy it, another when you sell it, and your property will qualify for 1031 exchange treatment.In a market of fast-appreciating property values, flipping property for a quick profit has its rewards, but you'll be paying tax at ordinary tax rates.

Every state tax return is different but ultimately you will only be taxed on your rental income.You may or may not pay tax on the rental business depending on if you are in an income or loss position.You will file a California resident tax return because you are a resident in the state.You will report your "world-wide" income on your california return which includes all the income you earned such as from your W-2, 1099 and even includes the income from your out-of-state rentals.To avoid double taxation - California will provide you a credit for taxes that you pay to other states.

S-Corp's have double taxation while LLC's do not. 

I would classify these properties as vacation homes, for all intents and purposes, due to the fact that they wouldn't make for practical full-time living quarters (lacking storage, no garage, large deck and yard in lieu of indoor entertainment areas). 

By presenting them your business plan, updating them monthly/quarterly, you can be front and center of their attention.

@Jim PeretDid the CPA help you run the numbers and see what the impact of UDFI taxation on the leveraged gains would be?

Myth 2: It is wise to constantly leverageTruth: You don’t make much when the smoke clears Don’t borrow against your house to invest in stocks, taxation hurts.