If it was a rental, you treat it as part of the sale of the property.

The 4-plex should be treated in one section on Schedule E.

If someone attaches a judgement against you; you will be on the hook until it is paid.Typically an umbrella policy is only a couple hundred for a 3-4 million dollar policy.I'm a tax accountant and represent people before the IRS.You will be treated as a sole proprietorship for purposes of flipping homes.You income is the sales price, plus any other miscellaneous income you may receive.

My thoughts are if your going to take away commission to reduce the price of the deal dont be surprised if you are not treated well in the future when you deal with agents and deals in the mls.

Will home prices do down, sure, anything can happen, but for those who are investing in the long run, I think we are cautiously optimistic that can ride this out and be rewarded in the long run.Another point worth mentioning is that many on this site are looking for STEADY cash flow rather than appreciation, that is a more conservative way to play real estate unlike the boom a few years back when everybody is treating their home like an ATM thinking that the prices will continue to increase forever.

Please correct me if I'm wrong, but if I'm right, I think one of the issues in your perspective might be that you're treating property investing as a substitute for work or other standardised income streams - I think it's more realistic to think of it as either a savings scenario, where you try to get the best return rates possible at the minimum possible risk, or alternatively, as supplementary income to an existing stream.Living off your investments completely normally means you either have a very large and lucrative portfolio (which, indeed, takes years to build), or that you've somehow turned it into a full time business, such as being a realtor, buyers agent, fixer/flipper, builder/developer etc - but that's a whole different yarn that should be correctly titled "running a realty related business" as opposed to "investing in real estate".Again, if any of my assumptions are wrong, please correct me.

That is the wrong way to go about treating a tenant.

That's essentially what Joel is telling you when he says the bank doesn't really care if you make a profit, but they want to be sure you have enough, (actually, more than enough) cash to make the mortgage payments.Finally, that appraisal is almost certainly going to be based on capitalizing the property's NOI, so you should recognize when making your projections that repairs and capital expenditures are not treated the same.

[NO - A SINGLE MEMBER LLC (LLC WITH ONE IRA AS OWNER IS TREATED AS A DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES AND, THUS, NO TAX RETURN IS REQUIRED TO BE FILED] Do I have to pay Federal corp tax on earnings?

If the option is allowed to expire without exercise: Report the $10K as ordinary income in the year of expirationIF the option is exercised:If the option is exercised, the option price is treated as part of the sale or exchange of the real property.The HUD will reflect a sales price of $247K with a credit of $10K and a net of $237K (before closing costs).The depreciation must be recaptured.