But at the same time, next year when I'm doing my taxes and need to claim ownership of a house that I'm getting an income from....and I get red flagged and in trouble...that'd suck.

If you sell for $125k then there is no gain on which to be taxed.

I have some heloc available and I will outline that information below.Purchase Price: $575,000Revenue: $100,183Expense: $33,355NOI: $39,113Seller Willing to Finance with 30% Down: $172,500HELOC Availability: $220,000Appraised 6/2016: $575,0002013-2016: $200,000 in Renovation, proven with Tax ReturnI was hoping to use the HELOC for a down payment.

I'm looking for referrals for anybody that's can assist in helping set-up a legal entity for tax purposes the correct way, particularly in the Atlanta Metro Area.

Maybe a little easier than fighting city hall, but not by much. 10-4 on your comment about taxes.

Chances are that any tax saving you may realize from your rental property investment won't come close to offsetting the income tax and the 10% penalty you will  pay on the 401K withdrawal.

The problem normally that comes to mind with this strategy is two fold: 1) You have to take title to the property (even if only for a second) so there are double transfer taxes, double closing costs, etc., to pay...., and 2) the new buyer may have trouble getting a loan because now you have a title seasoning problem (most banks only wish to give loans secured by properties that have been held by the seller for 12 months or longer).

The problem normally that comes to mind with this strategy is two fold: 1) You have to take title to the property (even if only for a second) so there are double transfer taxes, double closing costs, etc., to pay...., and 2) the new buyer may have trouble getting a loan because now you have a title seasoning problem (most banks only wish to give loans secured by properties that have been held by the seller for 12 months or longer).

Annual taxes, abatements6.

Some entities have advantages over others depending on the activities of your business.From both a tax standpoint and a liability standpoint, forming some type of entity is usually the best option.