his lawyer is protecting him as he should.. these strategies will work for someone who is well capitalized but for beginners its a great way to foul up a seller and them selves.

Does anyone have information on the state and federal capital gains tax (Iowa to be state specific) I have clients wanting to flip and would like to give them an accurate estimate of proceeds.

OK I see in another thread your asking about lease options.. and probably sandwich lease options and your lawyer is sizing up your financial ability to execute on your contract when the person you lease to stops paying you which is highly probable.. so that's probably good advice unless you have deep pockets and can cover a mortgage or lease payment for the time it takes to evict have the money to rehab the house once the tenant trash's it and then lease it again.most who try these schemes do it because they lack capital and undercapitalized investors fail most every time.this is what the lawyer is thinking.. how to you get through a default.

Will insurance companies allow you to rent your own property under loss of use?  

It’s only been a year, so let’s assume the market is still trading this asset class at the same capitalization rate.  

It has "flash in the pan" attraction but depending on the concessions made by any city it can be a net loss for a city.

Hit me up if you ever want to chat REI in maine. i called the hard money firm you recommended to me on my recent posr, (milk street capital) I may pursue them!

I'm neither a lawyer nor an accountant, but I recommend Googling "closely held corporation" and then asking your tax accountant how, if any, the proposed idea might impact your overall tax situation (https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-5: A closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers.).I've read that when two closely held corporations owned by the same small group of shareholders do business with each other, the IRS sees a red flag because some people try using this approach to evade taxes.From my readings of personal finance articles, this additional scrutiny is based on whether there is an "arms length" between the two parties in a transaction. 

The reason I ask is because a handful of clients that are interested in investing are using self-directed IRA funds (through Pensco or Entrust), and therefore cannot take advantage of the depreciation - being that its retirement money and they don’t have deductions/losses to use.

The reason I ask is because a handful of clients that are interested in investing are using self-directed IRA funds (through Pensco or Entrust), and therefore cannot take advantage of the depreciation - being that its retirement money and they don’t have deductions/losses to use.