Market dictated we lower the rent, now tenant wants the difference refunded from the security deposit.They are good tenants & he is an accountant, so really into number crunching.Thoughts?

Do not let a tenant dictate your process.

Changes to an existing lease are dictated by state or city statute.  

Your purchase contract probably dictates how this is handled.

@Jonathan S.Bottom line is you are the new owner and you dictate the decisions that are going to be made for your property.  

I would not allow a renter to dictate how I handle my own property, particularly based on this nonsensical COVID issue.

At the same time, identify and get in touch with key subcontractors to get a sense of their respective scopes of service, cost and timelines.Do the same on the permitting front.You should use your understanding of the cost and permitting process to frame the terms and conditions of your purchase offer and the release of earnest money to meet the milestones dictated by project schedule.Before you do any of the above, it is advisable to make your very first step to be to figure out the market value of the project you intend to create and deduct cost of sales and the % of profit you'd like the deal to generate.

Every deal is different, and supply and demand really dictate what we can sell it for.

Your accountant does not know how to file a partnership return.The great thing about partnerships is that you can dictate how allocations get split without considering of capital contributions.The only consideration to factor in is that if you do not have any capital contributions, your basis would be $0 and would be limited in taking losses on your individual return based on 'basis-limitation' but that won't impact the filing of the partnership return the way that you are discussing.

I agree fully with Andrew.You are confusing the legal laws under which an organization is structured, which is nearly always dictated by a given state, with the federal tax structure that the entity is operating under, which is dictated under the Feds.For income tax purposes an LLC is most often either a disregarded entity (wholly owned), or a Partnership (multiple owners).