Thank you for your response.I believe that here in Canada we are not allow to evict people that easy.But definitely is a subject I need to learn more about.Leandro:It depends upon which province you are in ... tenancy law (and its interpretation) varies by jurisdiction.  

@Upen Patelhttp://www.consumerfinance.gov/eregulations/1026-3...See/open "official interpretation" near top of page, just above "b. credit over applicable..."

I would share the cold hard tenant ledger and let the next LL decide how to interpret it.As far as lying, acting as someone's accomplice in a fraud make you both rather bad people and sort of undermines your stated reason for looking to do this in the first place.

BUT......The IRS interprets that the first dollar you purchase less than your sale or the first dollar you take is a dollar of profit. 

I understand that's enough for YOU, but we have a more well defined mechanism for interpreting the Constitution in this country than any single individuals opinion.

And frankly can lead to disaster for someone who may interpret the influence points of a posters comments as a righteous investment strategy.

But, they'll all tell you that it's really hard work and the deals aren't just sitting around waiting for you to come along.Of course, if I'm interpreting anything you said incorrectly, I sincerely apologize.

Again, maybe I misinterpreted your post (and if so, I apologize, it was unintentional), but my response certainly seems to logically follow my interpretation, indicating that at very least I read your post.

My interpretation is YES--provided you lend the money, which you borrowed, secured by RE or even a promissory note.Imagine borrowing money at 6% and lending at 18%.

Still, the definition is subject to interpretation, which is just another name for grey/gray area.Forming an LLC would be one of the factors indicating "trade or business", and it may tip the scale if other factors were not conclusive.My recommendation is to file 1099s.