Perhaps a stickler for details but I think it is important to point out that your profits from a flip are NOT capital gains, it is ordinary income taxed accordingly.

Such entity in the ordinary course of its business must be engaged directly in real estate management or development activities.2) Expenses related to the real estate will be paid by the corporation.3) The real estate will not be used for personal use.4) There may be periods of time when the 50% test described in 1(a) above is not satisfied.

"My son owns four houses" or "my son owns and rents out six apartments" is a very powerful, complaint-stopping statement in American society.

The taxes don't matter, and 99% of mtg.s are ordinary amortized mtg.s.  

They've decided that extraordinary is too hard, and ordinary is alright.

@Ricky S , Scott's book is called Set for Life: Dominate Life, Money and the American Dream

All depreciation recapture tax due in the year of the sale.For principal received, prorated as in your example, 60% as return of basis, 40% would be cap gain, as you receive it.For interest received, ordinary income tax.This assumes this was an investment property, not a flip.  

Other than that, you can deduct all ordinary and necessary expenses against your rental income.

If you buy through him you will lose money and add a lot of anger and frustration to your life. 100% guaranteed he will be the subject of a future episode of American Greed.

The American small business landscape is strewn with carcasses of dead and dying small businesses that were started by people who did not plan before moving forward.