If you have a partnership structure or some other facts and circumstances around the loan that indicate you are extending it in the capacity of a trade or business, it will be considered ordinary income.Keep in mind that the tax rates will not differ between ordinary and passive income unless you sell the loan for a gain/loss.

I'm tried of paying the unnecessary CAR/NAR fees 

Shouldn’t take me much time and I’m thinking this will also help look at the combined accumulated losses and assist financial planning.If you don’t mind me asking, do you have specific tools you use for finding deals?

Flipping always seemed more risky and STR is riskier as well though it can be more profitable it can lead to serious losses. 

REPS stands for Real Estate Professional Status—a tax designation that lets real estate investors write off rental losses (like depreciation and expenses) against other income, potentially saving a lot on taxes.

So, now almost two years later, I've had to close my flipping business because I can not seem to recover from this loss. 

With a 4-plex, losing one tenant is only a 25% loss of income versus a 50% loss in a duplex.That said, a duplex might be easier to manage, especially if you're new to investing or will be away for long stretches of time.

You may be able to get out of this bad deal with only your fees as a loss.

Put it on the scales, it's a loss.

I am interested in pursuing the legal structure of creating a land trust that owns the investment property and the land trust is within a WY LLC.I have spoken to NCH, but I was wondering if any of you have recommendations of other companies that can help setup this structure for houses outside of WY.Thanks in advance**I am NOT looking for comments on why this is useless, unnecessary etc.