I told him I would fill the vacancy as quickly as I could, but would be deducting the break lease fee out of his security deposit and...if the vacancy continued into July...I'd also subtract whatever pro-rated days of rent I missed out on. 

Investing in a property that you will be living in while splitting ownership will complicate the situation come tax time, and may disallow passive activity losses for your daughter.It is definitely possible to structure this deal to potentially work, but will require a lot of consultation to make sure all your i's are dotted and t's are crossed if you happen to be selected for audit depending on how the invested property is used (rental activity (schedule E) vs itemized deductions(schedule A)).

@Levi Spears You have to be 18 to enter into any legally binding agreement.

There are defiantly some levies in our near future but once that is all said and we are expecting a major increase in sales value. 

Just starting out with real estate investing and I haven't talked to the CPA yet.Let's say you have a day job that pays well, $200k/year.If you acquire 2 rental propertiesproperty 1rental income - expenses - mortgage interest - depreciation = $10000/yearproperty 2rental income - expenses -mortgage interest - depreciation = -$15000/yearDoes this mean that you end up with $5k deduction against the day job salary?

Tenant wants to stay and agreed to the amount but did not agree to the other terms insisting that "I’m not able to agree to depositing any funds into your account when you can clearly deduct this from the deposit you are and have been holding since 2011."

If I have a receipt for several items that I used for a repair on a rental house, am I allowed to include the sales tax on those items in my deduction too, or just the base price of the items?

After deducting unpaid taxes and fees, the sale generated an overage of $37,994.

Tamarra, be sure to keep good records of your expenses, you can deduct these before you calculate your SE tax.

The interest on the equity loan would be deductible as home mortgage interest if you itemize.As long as your tenant's rent is giving you a positive cash flow, then continue to let your tenants pay off your mortgage.