I'd write a response letter with what you believe to be are fair deductions and send it certified, return receipt. 

Any way I can deduct the interest?

Don’t forget to deduct the 6-12% in fees.

Your mortgage interest can be deductible on your taxes too. 

@Courtney M.Lot's of great suggestions on the forum:Seller carry/finance: Seller may benefit from deferral of gainsHELOC: if for investment, tax-deductible even post reform401(k)Loan: up to the lesser of: (a) 50k and (b) 50% of account value.

One of the accounts covers almost all of my bills which are all automatically deducted. 

Have a chat with your CPA, but there are some very nice benefits with, say, going to work on your property on Friday and Monday, but then enjoying the weekend at your lake house and being able to deduct travel and some of your meals.Airdna.com is a good resource for estimating vacancy and revenue potential. 

We have recent history to prove it: In 2017 the US levied a 20% tax on Canadian lumber.

Also, PMs deduct repairs from rent before passing it along to the owner.

Your excuse for not paying is court costs, which are not eligible to be deducted from jv profits, and a totally different set of contracts to a property you just said you sold, but reclaimed...