I do not think I would be subject to capital gains tax as the profits won't exceed 250k and I was using this unit as my primary residence, however to your point the high rates and expensive prices do make me hesitate in wanting to purchase now vs waiting another year or so.

Since we waited until the end of the year and the original custodian didn't release funds quick enough, she officially converted to a Roth the first week of January, and will now pay the tax as married in a higher tax bracket :(.

However, the owner is open to creative financing options, expressing that he'd like to avoid as much capital gains tax as possible.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

In North Conway and Bartlett you have to pay 9% state meals tax as well. 

Otherwise it WILL be subject to tax as capital gain.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

The idea is that the end user pays the sales tax. 

The tax advantage of renting a property is that by default you end up holding it for more than a year, and thus you pay long term capital gains tax.

Does they pay the same Tax as locals, and what kind of Taxes you have to pay in the US for properties?