My take on this is to invest in real estate like a drunken sailor in the dips, as real estate becomes more expensive throughout the recovery save as much money in your ROTH and pre tax as possible and buy mortgage notes and do hard money lending deals and save cash for the next collapse.

More here: http://www.advoco.es/advice/8-personal-tax/75-taxa...On the topic of taxes, if you intend to relocate to Spain and work here as an employee of a Spanish company, it's worth reading up on the Beckham Law.

DEBT Is good as long as I control it FOR MY ADVANTAGE and it doesn't control me.Some people can't use debt in a productive way so it's best they do not have it at all.It's the similar argument for people who claim less dependents on the taxes so they have more taken out each year for a bigger check for them later. ( a forced savings plan for those with little impulse control).Conversely there are those who say pay as little tax as possible and do not give the government an interest free loan and make more money investing it before the taxes come due.It's like paying off your house.

Basically Schedule E is a way for people to claim incomes from rentals without also paying self-employment tax - a good thing.

If I have my builder do it, I would have paid tax as it is related to building.

Seller i hesitating to pay Capital gain tax as a lump sum payment. 

Also, I am concerned with the income tax as I also had regular personal income this year.

When you do "short-term," you're actually considered an "active business" subject to self-employment tax as well as your personal income.When doing wholesale (for example) through an S-Corp, you may treat part of your net gain as a distribution wich is not subject to self-employment tax.

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 Non disclosure states your tax records will show purchase price 10 bucks.. this is how they work in Mississippi.. so if its off market there is no way to know what someone paid for it.. the assessor assess it by local values for tax purposes.In CA in the good ole days it was common for developers to pay more stamp duty.. as you could back into sales price by figuring out the transfer tax as it was based on a % of the sales price.. so developers would pay more on purpose to give the illusion they paid more than they really did..