I suggested to him that he transfer the property to a llc/Corp, where various family members are officers of the company.

I am planning to transfer my IRA into a solo 401k so I can invest in real estate.I am planning to use my 1099 income to fund it on a regular basis.Do I need to file a different tax form where I would pay medicare and ss taxes? 

They say specifically it is not for investors, but rather a program to help people achieve home ownership for owner occupants.

Some say that the benefits of this is that it gives you an extra layer of protection, anonymity (if you have the holding LLC in a state like Delaware) and additional ease in transferring money between the LLCs.

@Michael Cote, once the deed is in your name, you have ownership.

It depends on your Adjusted Gross Income (AGI), Marital status and length of ownership. 365 days or less is considered a short term capital gain and it is a higher bracket than something you own 366 days or more which is a long term capital gain.The biggest punch is who is in office.

Make sure you are following the rules of the warranty (if there are rules/instructions) on how to transfer it.  

THEN we got ready to close and the lender told me that if I sell the house and transfer title, that they would call the note due.

@Michael CotIt depends on ownership.

He then responded with he wants me to provide ID and proof of ownership of the building.I don't think I would do this for a couple reasons.