10% Beneficial Interest

[vatodd]

#1 In a sub2, xfer title to land trust using warantee deed.  On the trust agreement, should seller be listed as a 10% beneficial interest to passify IRS rules of "ownership" thus avoiding DOSC, if the lender thinks something "hinky" is going on?  Have seller also sign assignment of bene. interest to me...

#2  Who should be beneficial intrerest on the trust agreement...me personally or an entity...what about property I own that I personally have mortgaged...I'm transferring all into seperate trusts, but dont know what to do about benef..one is a long term hold..10 or more years...im thinking LLC..one Im owner financing for 3 more years to a tenant/buyer..only about 20% equity in it.  

#3  Whats this I hear about loosing cap gains treatment on property in a trust...is this B***S***?

Thanks for any insight and advice  :D