I paid the lender $1000/month for each of the first 5 months, at which point he declared the loan in default due to another unrelated loan being I have with the same "lender" though funded via a different LLC being declared in default.

After a series of bad tenants, she finally got one that completely trashed the place and she declared she was permanently done with landlording and decided to sell the apartment.We went over there, cleared out the old tenant's junk, and brought in an agent.

She has since paid me back 1/3 of the total rent but is claiming she is unable to pay the rest and has other bills and is declaring bankruptcy.

It is income regardless of which account you keep the funds in.The same holds true if you are holding the properties in a pass through entity such as an LLC or an S-Corp - as well as many trust structures.The only time you would not declare this as personal income is if you are holding the properties in a C-Corp or a trust structure specifically structured for this.

They should have the ability to pull from their resources and write into your declaration of insurance coverage for pets.

Google: Sole Proprietor's status as a covered employee for a state form where a declaration can be made about Workman's comp.  

No legal statue provides that you must declare why you refuse!

Sure the extra deposit is nice to have but how long will it last if they send a CDC Declaration to you and you are stuck for the term of the lease. 

Must must also declare rental income and pay tax on it.There is no difference as far as taxes are concerned.

Probably a dumb follow-up question, how can I declare my property as investment property?