In a state where there is a 2% transfer tax a round trip from you to the LLC and back to you will cost you 4%In one location I know of the county waives the transfer tax when going between an individual and a trust as they do not want to tax someone organizing their estate (estate planning many times involves transfers into or out of a trust).Pull out an old closing statement or contact a closing attorney if you use them in MD.

That's one clue there is a serious buble under way.Rents are NOT subject to any crazy tax.

UBTI is Unrelated Business Taxable IncomeUBIT is Unrelated Business Income Taxa related one is UDFI or Unrelated Debt Financed Income.All these stem from the treatment of an IRA like a trust.

Now the issue is about the self employment tax, as I’m manager(active partner) for the LLC, so looks like all of 28k +30k+ 130k are subject to self employment tax.

Does a deed of trust carry the same fees or tax as mortgage recording.Thanks for your help.

I told him absolutely - but the benefit depends on the recapture tax.

@Marcus Rodger, I see every limited value in a lot fo books, especially about things like gearing and tax as the laws change frequently.In the NZ market the basic precepts are fairly simple.If you can afford to negatively gear safely and you have decide it is a safe enough strategy for you then pick the market with the highest likelihood of capital growth, which is generally, Auckland, Wellington and Hamilton, and start investing.There are markets where you can still buy cash positive in New Zealand but you need strong local knowledge and good boots on the ground to buy well in many of those smaller areas.

Rent Control is everywhere because new people that plan to move those cities can't vote against these rent control laws that hurt them. and us landlord are hated micro minority.The only way to deal with these uneconomic laws is on the State and National level because it is in the best interest of the State and Federal government to extract much Tax as possible from rent.

With 3% property tax a 1/2% rule is considered good!

Basically you will be paying a higher property tax in TX and higher CA income tax as you reside here.