However, if distributions are still ongoing or the final resolution is unclear, you may need to wait until 2025 or later when the loss is definitively established.Under IRC Section 165, worthless securities can be written off as a capital loss, but partial losses typically aren’t deductible until the investment is fully settled.

Appears the guests may have left the faucet "on" when the pipes were frozen and when no water came out, forgot to turn it "off".What may have caused the overflow of the sink is maybe the drain lines were also frozen?

To piggyback off what Ashish said, the limits are. 

You would be better off watching some of the old webinars here on BP and then reading a few books. 

You may be far better off structuring it as him being your lender (as opposed to a partner) or, alternatively and likely less attractive, you being his contractor.Part 2.

If youre going to engage with the darker side of the system and profiteer off of the downtrodden, youd better get more crafty. 

To off-set the depreciation recapture, it would seem reasonable for me to request a concession (e.g., more shares) that's outlined in the Operating Agreement.

Maybe I’ll get lucky and the note pays off so I have the cash to buy a new note and no more cash sitting idle. 

It takes a lot of the stress off your plate.Also, you need to figure out your criteria before you jump into anything.

Trust your gut and ideally go off of a recommendation AND properly vet the lender.