Then I looked up the Federal Fair Housing Act, which also doesn't apply "... if the owner actually maintains and occupies one of such living quarters as his residence."

I'm on call for jury duty for federal court.

It will give you a chance to see how being a landlord is, dealing with one tenant, managing a small property as well as putting other people's money to work for you IE. having your tenant substancially pay down your mtg freeing up cash for you to do other things with IE. invest, save, pay off debt. etc. and finally be able to capitalize on some great tax advantages on your federal tax return.Owner occupying and managing a small 2 family is about as easy as it gets IMO and this will give you a taste of the business.

There are often tax filings that are not prepared and or the owner (the IRA) does not report taxable income that is being passed out of the LLC to the IRA.Lastly, promoters often refer to the Swanson decision and various IRS memorandums as verification of the validity of the structure.

Tax guys must actually be .... doing taxes today.But I'd say that your pre-tax 401-K contribution is taken directly out of your taxable wages and doesn't show up in your W2 income.

The Federal Trade Commission has plenty of warnings about this.

Note: there are several federal and state laws that you have to abide by in order to properly execute an owner finance wrap like this.

On top of that you can expense the labor cost from profit to reduce taxable income.

I know its not taxable income I just looking to clanup my P&L.

Thats a federal agency you're dealing with.If you do it on one, you might be able to at least argue that your intent was to move in.