There is no sewer easement or anything recorded that my active line is there. 

Your best bet is to get an estoppel that verifies their lease dates, rent being paid, security deposit, and advanced rent.

I honestly wouldn't even trust anything QB is telling you when it comes to taxes.You're in a partnership, which acts like a conduit to pass through the income/loss of the activity to the individual owners.

For those managing active income streams—like wholesaling, flipping, or even running a real estate business—filing as an S-Corp can significantly reduce self-employment taxes.

Kitchens and bathrooms are always a good bet, but think beyond the basics.

You materially participated in the activity for any 5 of the last 10 tax years.6.

I'm an active-duty military (retiring soon).

Don't try to build a buyer's list with no experience and no active under contract.

Here’s why and what alternatives might exist:Real Estate Syndication or Fund: Invest in funds that generate passive rental income, which can offset Schedule E losses.Real Estate Professional (REPS): Qualify for REPS to reclassify rental losses as non-passive, allowing them to offset active income.This post does not create a CPA-Client relationship.

Since Joe is not a registered lender, Joe is not held to the same standards as a lender and the sale could be a wreckless and poor activity by the bank putting Bob in that situation.