The government up there also makes it hard on landlords. 

Hi Eric,If you are talking about your personal tax liability (at the federal level), the formula I use is: NOI-Total Debt Service= Cash Flow; Cash Flow+Principal Payments Added Back (on debt service)-Depreciation=Taxable Income/Loss. 

As long as the government gets out of the way and let the free markets work, we will be ok.

All:There is supposed to be additional guidance coming out this fall from the Federal Government and MN DEED has a section on their WEB site dedicated to this topic as well. 

I’ve only been investing on the side for a little over 2 years, my day job is actually writing and reviewing government contracts.

Sometimes it is difficult to get government agencies to call you back

However, on your primary home it will be more strict as there are a lot more federal compliance rules involved. 

The government can put a lien on your assets, and banks don't like to see that. 

Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC? 

Your current business entity can be your trustee.Get a Federal Employee Identification Number for free at IRS.Gov.