Simplified example:Purchase price : $100kDownpayment: $20kCapital Improvements: $10kSold price: $150kYou paid into the property $30k (which is your cost basis) and Profited $20k which would be taxable income.$20k to be taxed on Ordinary income rate (dependent on your other income sources) AND subject to self-employment income tax (consult with a CPA).

From a tax perspective - The full year's rent will be taxable at the time that it is received and not necessarily when it is "earned".Ex. lease of 10/1/2017 - 9/30/2018 lease with a full year of rent received on 10/1/2017 will be 100% taxable in 2017 and not 3/12 in 2017 and 9/12 in 2018.

It reduces your taxable income.

Stanley Crawford,I"m sorry to hear about this; however, I do want to remind you that for tax purposes you have to reinvest the insurance proceeds or they will become taxable.

My properties are primarily located in Iowa so your situation may be different, but I look up the property on the county assessor's website to get a feel for the taxable value of the land.

Randy Bearden,The penalty is $195 Per Shareholder Per Month.Ned Carey,Truthfully, a zero asset, zero transaction return wouldn't be too much trouble.All entities that are taxed as corporations MUST FILE regardless of transactions.Corporations:Who Must File Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income.

To self-certify, a taxpayer merely completes a form (which will be released in the summer of 2018), and attaches that form to the taxpayer’s federal income tax return for the taxable year.

@Chris LauerSorry, I'm a corporate accountant and not a tax accountant - but maybe others can weigh in.I would think if you paid taxes on the estate and moved the money around - that wouldn't create a taxable event.Just like if I cash a check for $1,000,000 from a private lender to purchase a property, the IRS can investigate it all the way - but it's still a loan on the books and not income.Just my $0.02 - sorry I couldn't be more helpful

The portion of the sale proceeds that your qualified intermediary receives in the form of a seller held note, is not like-kind real estate and, as such, is taxable boot.  

Another purported benefit is that one can borrow from the cash value and that the event would not be taxable.