This is my favorite, as you maintain 100% of your equity, its fast access to capital, no prepayment penalties (so payoff when you hit the brrRr), and while costs may be somewhat higher, you save costs of title fees, appraisal, and net out somewhere even after all other mortgage fees.

The penalties are severe.

I would let them rent any of my homes (and I have a bunch).In terms of net income the wife probably has higher tax withheld then is currently necessary due to her husband's previous earnings and the so-called marriage penalty.

You could put some of the money in a Roth as I believe your principle can be removed no penalty after 5 years.

The ROBS plan is designed for you to own and operate an active business providing a product or service, and to be able to capitalize that business using existing tax-deferred retirement savings without penalty. 

While there are no taxes or penalties for rolling your existing tax-deferred retirement savings into such a structure and capitalizing the C-Corp - the corporation will pay normal corporate taxes (at 21% federal currently) and you would also pay income tax on any salary you take from the company. 

The code provides for extremely stiff penalties, so DON'T DO IT!

However, the rule is actually that you must correct the calculations in the year the error was discovered.So advocating a willful blindness to the depreciation during ownership is one of the best ways for your client to end up with "willful disregard" penalties as well as a fat preparer penalty.Run from this person. 

I'm willing to take some operational penalties to achieve this separation.Secondly, if you're ever sued personally, that record is attached to your name forever.

Some individual municipalities at the local level are already extending their deadlines and/or waiving penalties for paying property taxes late.