You need to realize there is a value to your usage and not compare it with ordinary rentals.

The equity participation or profit participation of the Note is not deemed interest and is deemed to be either short term capital gain or long term capital gain or ordinary income if its in your course of business.

Hi Brit, I have done a few deals in Ft Myers and Cape Coral.

I live in Earlysville, VA and I am currently investing in the Richmond, VA area.I am an ex-patriate Brit now naturalized American citizen :).I invest with my partner John Kendall.

Expenses that may be for adaptation include expenses for altering your property to a use that is not consistent with the intended ordinary use of your property when you began renting the property.So, repairs and maintenance are deductible as soon as I convert the residence to a rental...

There is some detail under the hood here but nothing out of the ordinary.

So then, what is fair, is you bringing something to the table that is more than what is ordinary for the fee you already charge.

I know a brit who is getting bank rolled by a guyin Monaco(tax exile place in Europe) he makes 20% of the profit, what 20% of $5k....now that is crazy!!!!

schedule E is income/expenses by property (A,B,C,etc). although it doesn't matter that you cant insert trust deed income into a schedule E b/c it's taxed as ordinary income.

It is ordinary income, plus both sides of social security/med.