So the leverage will magnify your gains 4x as well.Regarding jurisdictional issues on lawsuits, I was told by my attorney that the suit would land in Ohio (where most of my holdings are located) even if I set up the LLC in Wyoming/Nevada/Delaware.

I would build a home, sell it in a couple years and all of the capital gain was tax-free.

In my example, do you think that I actually gain immediate appreciation after acquiring the property since I bought it below market value?

Now I am finding that the people who would actually gain from selling me the insurance, say I don't need it.

If you are considered a real estate dealer, you have a trade or business - the income is earned income, you are not eligible for capital gains treatment, and the property is not eligible for a 1031 exchange.

Capital gains are russian roulette at its worse - lose on them once, and the five times you gained on them may not mean squat.

Otherwise, I'd rather be taxed at 15% capital gains + a few $9.95 trade fees at Scottrade, and no penalties if I completely exit, instead of taxed as ordinary income (close to 50% ?)

Of course the banks used it for their own financial gain instead of lending it out like was suggested to them.

I dont pay too much attention to tax value since thats not always up to date. you want to be careful when using sites like zillow since they may or may not be up to date and dont take into account the current properties condition.

I also read through a number of legal articles, paper, the Texas Property Code, etc. and I can't find anything specifically relating to how we gain an interpretation of this from someone empowered to do so.