One thing that he can't do is violate wiretap laws - for which there are both federal and state.

If I pay  his water bill how do I expense that in my tax returns.

As long as you can hold onto the property you can continue to get the appreciation, principal pay down, tax benefits etc.

I have a tax question.

Sac is great market as well, but a little less favorable for taxes, landlord laws, etc. which is what attracted me to Reno. 

@Dominique Osborn spent hours with them on the phone and provided receipts on numerous occasions but it's still showing as "not" paid.Anyway, is anyone on here a tax lawyer or can anyone recommend one?

ALL DUE respect, terrible choice, ok so you made 130k, 65k each, after taxes, 40k, so what. 

I am looking to find the optimal tax and legal structure to optimize his situation.

First, I thought about renting it out to a church, but looking at tax code I think it would be better to flip to a church.

Understand legal requirements like tax numbers, residence permits and use of a notary.