I pulled a list of tax delinquent properties in my area.

If they don't pay, you can pursue them in small claims court.6th - Let the process carry itself out.

Remember also that the interest on the loan is taxed at ordinary income rates.So for example lets say you have 100k and were making 8% in the markets - 8k per year and say you are in top bracket, you will pay $1600 in taxes per year or netting 6400.Now lets say you did a loan and were at 5% you are earning $5k per year (actually less because principal is being paid down and some of money goes into essentially a 0% checking account).

I have a couple questions in regards to setting up the proper entity as well as taxes. 1.

Once you own it, you should claim it.

If there is only a JV and not a new LLC formed, what forms are issued at the end of the tax year?

There is also a chance to offset more tax liability by using a cost segregation on the rental property.  

I am an out of state note investor, and have a note that is held in my companies 401K Trust, where a neighbor is suing the borrower in small claims court.   

Even if you're still paying for some of the expenses out of pocket, you've most likely drastically reduced your cost of living by eliminating most of if not all of your mortgage, property taxes, and/or insurance.

Your primary residence you get to deduct the interest and taxes but not the insurance.