But you can still treat it as resulting in Ordinary Income even though it is reported on Schedule E, which lets you properly report in accordance with the tax results it seems you are shooting for under the tax return loophole.If your CPA is looking at switching it between schedules to get that tax result...it sounds like they don't understand the reporting position fully and/or they just don't know how to use their own software to address it.In summary, based on what you are describing for the situation, it should go on Schedule E, with what sounds like the resulting refund of $17k.

Not that the intent is back out, but one thing I'm trying to do is gaining a solid understanding of no-risk EMD (as long as deal is closed within a certain timeframe), - how to explain the risk reversal to the seller - and also the buyer.I would be most thankful for the help and if you wanna join my network of MD/DC/VA based REI let me know.

I totally understand why some people get annoyed about cold callers.

Learn as much as possible so when you engage you understand the basics tennants of a flip.

My attorney wrote: it is my understanding that the lender was going to require seller to secure their interest with a second position mortgage.

So that's more like 7-12 yrs.Just trying to understand your numbers so I can also use it to adjust mine accordingly. 

Definitely something to consider when looking in addition to understanding if it is warrantable or non-warrantable and limitations as such. 

Do one or two then worry about setting up" your team.I HOPE you understand what I am saying. 

A good slogan to use to understand Cash Flow is:"The Investment doesn't cash flow.... but the INVESTOR does."

I think he just didn't read the part about the apartment (I missed it too the first time by, reading too fast :-)  Lol, my reading comprehension needs work.