let's say you buy a re-performing note, is the income you receive taxed as ordinary income or as passive income.if you invest in a fund that invests in notes, is the income you receive taxed as ordinary income or as passive income.

@Brit Foshee@ Neil Aggarwal@Andrew SyriosMakes sense.

SECURITY DEPOSITS: The total of the above deposits shall secure compliance with the terms and conditions of this agreement and shall be refunded to RESIDENT within _____ days after the premises have been completely vacated less any amount necessary to pay OWNER; a) any unpaid rent, b) cleaning costs, c) key replacement costs, d) cost for repair of damages to premises and/or common areas above ordinary wear and tear, and e) any other amount legally allowable under the terms of this agreement.

This is Way different than laying ordinary tile, as a slight difference in the edge elevation becomes obvious on rectified/marble.

Curious what the BP community has to say.Thanks,Brit!

S Corps and Partnerships distribute "distributions" which generally speaking aren't taxable as long as the partner/member/shareholder has tax basis in excess of the distribution.The tax on Box 1 ordinary business income can't be deferred via IRC Sec 1400Z-2.

You don't pay capital gains on flip -- you pay ordinary income taxes at your marginal rate plus self-employment taxes.That said, I don't consider my after-tax profit, just pre-tax. 

Hearing success stories from ordinary people motivates me more than horror stories scare me. 

Originally posted by @Brit Foshee:My latest can be seen here. http://www.biggerpockets.com/forums/522/topics/279042-my-first-six-figure-flip-hopefully-with-before-and-afters Wow!!

Yes, it's the ordinary rate schedule capped at 25%.