Found online: Can I purchase an investment property and hold the property in an LLC or corporation for liability purposes?

The fix and flipper is asking for 25K from me for the purpose of purchasing the property and paying for the rehab.  

I have secured financing, not sure the exact amount yet, the details still have to be ironed out, but between 50-80k, with a low interest rate and the investor is very willing to be flexible.

(c) Prohibited transaction (1) General rule For purposes of this section, the term “prohibited transaction” means any direct or indirect—(A)sale or exchange, or leasing, of any property between a plan and a disqualified person;(B)lending of money or other extension of credit between a plan and a disqualified person;(C)furnishing of goods, services, or facilities between a plan and a disqualified person;(D)transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a plan;(E)act by a disqualified person who is a fiduciary whereby he deals with the income or assets of a plan in his own interests or for his own account; or(F)receipt of any consideration for his own personal account by any disqualified person who is a fiduciary from any party dealing with the plan in connection with a transaction involving the income or assets of the plan.

Ironically, I get a call to put in a bid to do a full house renovation at this house.  

I understand you're learning how to do the numbers but whats the purpose of going to look at homes that you know you won't be attempting to purchase? 

That may not work in every house or neighborhood but for our purposes it was the ideal situation. 

Hello All, I bought a property in March 2012 for the purpose of renting it out.

I remember reading in one of John Reeds books that the irs has no definition of what defines a two year period and for tax purposes that can be as little as one year and a day.

Is usage info tracked and available for audit purposes?