There is no capital gains tax here....it is all ordinary income tax, plus ss/med.

IRS considers buying with the primary intent of resale is just inventory and is therefore taxed as ordinary income.

Only new loss would be ordinary loss if other requirements are met. 

@David M.Yes depreciation recaptured gain on Section 1250 is limited to depreciation above the MCRS straight line method and is taxed as ordinary income.

At 10% match, you should politely tell them to take their measly and miserly contribution and place it somewhere... or just stop contributing without telling them how I feel :) Bear in mind that when you finally get around to taking distributions, all of it will be taxed at the then-ordinary rates - unless you plan on not being financially successful, ordinary rates will be higher than capital gains rates.

If you are in the business of issuing mortgages - you may need to report it as ordinary income(line 1).If you are not in the business of issuing mortgages - you may report it as interest income(line 5).

It's just the rules don't make sense when it comes to 1099 filers who write off far more than W-2 filers with the same income, much of which is ordinary expenses that both incur, i.e., part of their mortgage for office space, vehicle expenses, cell phone, home phone, computers, printers.....I could go on for pages, but you get the gist. 

I'm not an expert in Arkansas real estate but 9 million purchase price seems a litte out of the ordinary.  

Hello On a high level view how is capital gains calculated in regards to taxes as well ordinary taxes.

You cannot deduct the principal payments, only the depreciation, which hopefully was calculated correctly.For other ordinary expenses, check out "Schedule E."