Frankly I have never actually created a list.I just fly by the seat of my pants! 

Until you actually file something, you are free to ignore whatever structure you set up.  

Keep in mind that the $625,000 pulled out is non-taxable because it technically a lone and actually has tax benefits.

Super nice folks and I actually met them as they wanted to see the house to make sure it was accessible enough.I refunded their entire amount.

Sounds like you got a winner there :) We actually just bought a new one last year- amazing location with main house on a great corner, and separately addressed guest house in the back that we rent out.

Actually just got an offer accepted for a client of mine yesterday on a duplex in Peabody.

What you can depreciate is what you calculated ($94k) plus whatever you actually spent on improvements.

Yes, you'd need to setup a budget and ARV, but I've yet to ever see any lender that requires you to actually make a draw.2.

So, you need to actually rent it out and show that you intended to hold it for investment. 

Before talking about taxes, we need to figure out how your deal is structured, and that is an actual conversation, not a few sentences on a forum.