This allows me to have 1 tax return (simple) with the Holding Company overall tax a congregation of the subsidiaries P/L.

Plan on spending 8% plus in order to sell and Montgomery County has a transfer tax as well.

And that 10k tax? As

Also, remember that flipping profit is taxed as earned income subject to self-employment tax as well.Along with actively buying properties, as mentioned there are all those "creative" deals you can try --- it just depends on what sort of leads that you get and what sort of risk will you take on.Certainly, there are other investments such as private lending (secured by real property) doing 12% or better... 

I see liability and I see something that could cause confusion and a drain on your time and energy an occasional perhaps bad review and a time-waster and having to track sales and possibly tax a lot of other nits.

I have several flipping clients in the Indianapolis and Fort Wayne areas, where I utilize the same strategy for helping them control dealer tax as well as paying tax in situations where there is a zero cash increase for the year.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

Republic, later a MS in Aesthetics Dentistry from São Paulo University, Brazil.

Though it’s minor if one was only buying one house I would not buy in a state with state income tax as it’s just one more administrative thing to do each year.

Section 1250 recapture = additional dep on top of  SL depreciation tax as ordinary income.Unrecaptured section 1250 depreciation  = SL depreciation on property taxed at 25