In either case, The Person would now own 20% of the asset and the LLC would own 80%.I've had authorities (not the IRS - that's my last resort) tell me both.

There could be a contested title (unknown heir, brother/sister disagree on selling the property, taxes due claims by state as a result of passing, IRS, so on,) at this point.It will likely take one of the heirs to get organized, start the process to become the personal representative/executor and petition the court.

You’ll need a new loan for that $450k+  I don’t see why the IRS would care if the investor reloaned it to you.

That's the tax lane and IRS rules. 

"I want to invest in real estate and earn $6,000 a month net cash flow by 2035 so I can quit my job and spend more time pursuing a career in hip-hop street dance."

But the deed is signed and filed in early 2024 after the redemption period and after the county gets it all together.When would the IRS consider the sale final?

Hi Adelaide,For STR - you are going to get most of your business from all the sports events -- racing - Indy 500, football -Colts, NBA - Pacers, WNBA - Fever (Caitlyn Clark), We just hosted the Olympics swim trials, other events include Big Ten Championships, NCAA tournaments (NCAA headquarters here), and the Combine (recruitment for NFL).We also have a pretty busy convention center -- not huge like Vegas or Orlando, but it is solidly booked year round with events like ComiCon, GenCon, Firefighters Association, Future Farmers of America, Candy Expo, and various others.For MTR, you are looking mostly at traveling nurses and medical personnel, you also may get contract workers for the larger corporations like Lilly, Sales Force, or Rolls Royce.Happy to hop on a call and discuss further.

But want to get an opinion or a better understanding on how IRS section 121 works in this case

But given our tribe's tendency to skirt the rules and believe in the magical powers of "I will just tell the IRS..." - it's a slippery slope. 

Would we be automatically classified as real estate dealers in the eyes of the IRS for this one flip?