If it comes to that and you have a tenant friendly judge, you could owe the tenant up to 3x the amount of the deposit for withholding the deposit. 

But since i am not 59.5 years yet if I withdraw looks like 20% federal withholding charge and about 10% I have to pay in taxes which means i loose around 30% of my 401k amount which I  accrued over many years

They continued to withhold rent as well.Once it was clear they would not cooperate in getting the place cleaned up I headed to the courthouse and filed.  

If a foreign national is a seller they would be subject to a FRIPTA withholding of approximately 15%.  

Wanting to discuss structuring rental property LLC's with holding company (management) LLC.

So its a modified A for me ( consider taxes / with holdings ). 

What is your goal with your next property (and the next) - I see investors flip back and forth with holding some and flipping in the mix to gain a larger one time sum of return too.

In the tenant agreement , during early termination PM is suppose to collect those fees(new leasing fees, advertisement and re-keying etc) when the tenant give the notice.In the statement there is $$$ amount for security deposit transfer , and when inquire about that part PM comes back saying that this is between PM and tenant and they cant tell anything .Can the PM withhold information about financial transactions with the tenant that include rent and security deposit from the landlord and deny rent without explanation ?

@Robert Johnson good questionEarned income generally requires withholding and paying federal, state, and local income tax and FICA.Rental income is usually taxed as passive income, similar to stock dividends or real estate investment trust (REIT) distributions*This post does not create a CPA-client relationship.

Hey Annmarie, it's true that sellers sometimes withhold lease information to protect tenant privacy, I do find it a bit inconvenient not having full visibility before making an offer however, the seller might be concerned about protecting the tenants' privacy.