Dave suggested the proper route to go.The reason I asked was if it was your primary residence was if you excluded all of the gain; however, as a flip or development project you would have recognized the gain upon the initial sale.

Why are LLC's recognized in all 50 states and why would any California pay $800 a year for one if they are basically useless?

:) All you can do is recognize what people are, amongst the 3 described above, run to the hills if they are 1 or 2.

I need to do more research on the subject and items you mentioned.As far as Mark's book is concerned, I do not have it in front of me, but remember that he listed 4 states that LT's were "legally recognized" not "legal".

And, if you recognize that, you can profit greatly, while the fools get left as the last man looking for a chair when the music stops.

Also take a minute to recognize that telling them no should be easy - the fact that you are stumbling on this may indicate your potential complacency with other units.

@Joel Owens  I was one who recognized what happened in metro Atlanta and 5 years ago I bought 54 homes for the exact numbers you describe..

CA does not recognize series LLCs so be careful in how many LLCs you are forming.Be sure to tell your accountant that you now need to file non-resident income tax returns in each state where you own property as well (though that state may not have income taxes). 

If you read the whole article, you may have recognized J.

Pay attention to the other bidders:Do you recognize any title company documents in their possession if only one property is being sold at that time, you may assume they had title work done, a better assumption if they bid, IMO.