Perhaps with better wording the misunderstanding would have been avoided.

Recall that $100k is the long-run fair value of the property in 20XX dollars, not what an enterprising real estate investor could buy an undervalued house for in a down market.That looks somewhat in the ballpark of the 50% rule of thumb to me, but maybe I'm misunderstanding what goes into that calculation.To be sure, real estate is illiquid and risky to some degree, so we would expect a positive return.

The misunderstanding and improper transaction is what lead to the tax issue in the first place most likely.  

David - I think you are misunderstanding us.

I mean, unless I'm misunderstanding (usually the case!)

So you can keep ranting and whiles you are at it, find time to understand what I wrote; clearly, you misunderstand some of what I wrote on purpose.Jeff, David and Samuel,Thanks for replying.

Sorry for the misunderstanding...

(He was living in MY building) Seems her underage drug supplying boyfriend and her had a 'misunderstanding'.Now THAT is the height of "well what did you do tonight??"

What you are misunderstanding here is that I am not guessing.

I called and texted the original tenant and she sent me an email stating it was her fault and a big misunderstanding.