I have a lot to learn about that also, wondering if I have to put the profits back into the 401K or can I withdraw them like an ordinary 401K and pay the tax on that....I'll be keeping my CPA busy for while!

If the seller finance they do not pay the capital gains until they exceed their cost basesthis is calculated based off principal payments received but the interest is taxed at ordinary income.

Moreover the payout is not taxed like ordinary dividends at 15% but as regular income.If I do find any interesting REITs that I plan to invest in, I will post my analysis on this thread.Do you have any REITs in your portfolio?

., 578 F.2d 520 (4th Cir. 1978) which deals with deducting expansion costs as ordinary expenses when one's activity rises to the level of a trade or business.

I am just curious how to protect myself from tenant accusations of hurting himself in the house because of things like: - "the doors are too narrow and I am disabled" or "your stairs or stair case to the patio are too steep I fall and hurt my ankle" do I need insurance for things like that or can I have it worded in the lease agreement that the tenant accepts the condition of the house and won't press any charges if he /she hurts himself??

I watched a tile install happen while the construction crew was trying to walk through the tile area to get to the backyard patio cover work, and the carpet was already in, yet the painters were masking off the carpet!

As for resale, you can count he SF, and an appraiser usually will count it if it was within the footprint, as in an enclosed patio.

This is out of the ordinary for me. 

Does it mean the 50k commission income has to be taxed our ordinary income tax rate 24%, plus the self employed tax which is about another 15%? 

Your renters are just ordinary folks like you and me.