stocks sold that were held for more then 12 months is a common one Looks like according to this link, stocks capital gain can't offset passive losses.Here is how the IRS defines Passive activities (IRS Publication 925):This means that you cannot use passive losses to offset capital gains, portfolio yields, ordinary income or any other form of taxable gains.

I don't see anything in the HW contract that is very much out of the ordinary.

This is ordinary income plus social security and maybe state income tax. 

Lots of risk that you can't control and it is taxed as Ordinary Income plus the IRS will see you as self employed so you will pay all of the Social Security tax and perhaps a 2.5% extra tax if you make over $250k. 

You'll pay ordinary income tax.  

What amount of depreciation recapture do you anticipate paying at ordinary rates?

They can be  classified as ordinary income/loss or capital gain. 

You will pay taxes on the profit at ordinary income tax rates. 

So, it will be taxed as ordinary income. 

Yes, rental income is taxed as ordinary income.