I've had some not happy when I have asked them to split it out.I've tried asking questions to the IRS customer service reps, and didn't have the best luck.While I cannot cite a specific official guidance on this issue, I consider debit cards exempt.

Of course, every owner's situation is unique and factors like the legal entity involved, purchase date, adequate passive income that can be offset with the cost segregation study, etc., will need to be considered.

Have run across this issue several times when getting referrals from other real estate investors.

And never being “at risk” is it even sufficient to legally bind a seller?  

Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

Alternative is the sherif evicts him and I pay tax and insurance.I know we can have a gentleman's agreement on these things, but im still afraid he might be able to legally sue me if we have a legitimate residential lease?

Go as high as you can go legally. 4.

Also, check for prepayment penalties or clauses that could cause issues.

This is something their screening probably would have caught, or their system would have a legal procedure to deal with it.

This is in large part a neighbor to neighbor issue.