The remainder would be a taxable loss by the LLC.Is this ok?

Combine the federal tax credits, state tax credits, state incentives, potential utility incentives, and a high cost of power and you might just find that your investment pays back pretty quickly.

I am always looking for creative ways to help my clients bypass the strict guidelines of federal backed lenders.

Plus, it's nearly impossible to discharge federally guaranteed loans in a bankruptcy.

With just a few rentals, this is difficult.If cash flow is your goal, good rentals will actually create taxable inome, not losses.

Some places require bonds and insurance so you'll need to state you settlement date and apply for refunds on bond/ins premiums.Personal property records may need to be assigned for tax purposes at the county and declare taxable property to the assessor.You'll need to see your tax preparer to file applicable tax forms from the sale and for income declarations as well as any application to change accounting methods or tax treatment of the company.In a real estate company you'll need to clear the old officers/directors and members with the State Real Estate Commission according to the license requirements for those positions and set any Broker Manager.Signs, letterhead, business cards, logos, copy rights and patents, if any (lol) should be described in the sale contract as well as all books, records, accountings and related working papers (so that an audit may be performed).

I have heard that income would be the taxable amount on schedule E (line 22) + depreciation, but if that's true, I would have qualified.

You're going to pay Federal tax on profits as ordinary income.

With my situation I will Not have to pay the 10% early withdrawal penalty but would be subject to the federal/ state taxes.

If I can't be comfortable with the SD IRA companies, the only alternative is to pay the federal & state income taxes & 10% federal early withdrawl penalty, so we can buy things other than what the brokerages offer.