Hello @Sarah Settle, I actually ended up keeping it as is since I plan on performing a 1031 exchange on the property.

It kind of depends on what the agreement says, what words were exchanged, and if you are chasing the money or taking it out of a deposit.  

This doesn't quite go to the point of your question, but if you haven't already factored this in, you should look into doing a 1031 exchange to defer paying taxes on your sale.

What are you offering on exchange for help?

Look into a 1031 exchange, also if you have lived there for even a short amount of time it could be considered your second/vacation home and taxed as a primary residence.

I presume he is selling the house in the end {for which he will get commission}.What else is he contributing in exchange for 50% of the net profit?

Also there are a handful of San Francisco Bay Area BP'ers who have started meeting informally to network and exchange ideas.

Offer to look at properties for them in exchange for him/her teaching you how to evaluate deals, estimate costs, etc.

Besides the normal precautions with having a tenant do work in exchange for rent, would you advise installing granite in a rental?

That would mean a capital gain tax of 200,000 PLUS state tax of 5% = 50,000.Personal tax total: 250,000Total tax on dividend/ distribution = $563,841.This is why it is considered malpractice in some states to advise holding real estate in a C-corp.You LOSE the Long Term Capital Gain Rates with a corp.You will pay tax at the corporate rates:TAXABLE INCOME: TAX:Over But not over Tax +% On amount over$ 0 $ 50,000 $ 0 15% $ 050,000 75,000 7,500 25% 50,00075,000 100,000 13,750 34% 75,000100,000 335,000 22,250 39% 100,000335,000 10,000,000 113,900 34% 335,00010,000,000 15,000,000 3,400,000 35% 10,000,00015,000,000 18,333,333 5,150,000 38% 15,000,00018,333,333 ............ ............ 35% 0Skewed Step up in Basis for HeirsNow, lets say you keep that Rental property in the corporation forever, Yes you can 1031 into something else; however, your kids will not receive much of a benefit as the deemed sale of ANY transfer will cause taxation.