I have almost zero in taxable accounts outside a savings account.

You have $200k in equity but you’ll have a taxable LOSS after selling for $1M or even $1.05M. 

So often rentals don't have taxable income; and once they do it's still not subject to the payroll taxes paid by W2 wages or on self employed income. 

The IRS's assignment of income doctrine says earned income is taxable to the individual, even if paid to a third party (like a church).Also, 1099 vs.

If you don't rebuild or replace, the transaction is taxable. 

A few things to note-Loan payoff isn't part of the calculation of what taxable gain will be. 

As a starting point: -If they work full time and make $700k a year -Don't want to or can't spend time self managing a short-term rental -Don't have a spouse who wants to take the lead on managing the rentals They are likely not going to directly reduce their taxable income with real estate year-to-year. 

That $10,000 is generally taxable income.

@Blake Johnson If investors want to divide real estate holdings without triggering a large tax bill, the biggest challenge is that transferring assets out of a corporation is typically treated as a taxable sale at fair market value.

UBTI exposure is not impacted in any way by a Solo 401(k), thus my clarification.There are 3 layers of alphabet soup here:Tax on UBTI  (unrelated business taxable income) is generated when a tax exempt entity engages in a trade or business on a regular or repeated basis.