I was afraid that she was going to file bankruptcy when she got over loaded and the BK court would force me to let her live in my rental without rent until they settled her issues.Her debt was mostly credit cards, used the $ on trips, eating out, expensive clothes and purses and shoes. 

We're going to be filing for an eviction shortly because this is a problematic tenant. 

I live in Wi. and I file as single. how much do I owe for depreciation recapture for fed and state?

We have recently been working with him on contract terms that both parties sign of course, stating that for every day that the project is delayed after his projected deadline we deduct a certain amount and for every day he finishes early we give him a bonus.

The reason I'm thinking the latter is because I can get better financing terms (85% LTV) and deal w/ less complexity/forms to file.

Sandi,It is counted as debt only because you have not filed a tax return yet to show schedule E income. 

But you have the choice to wait or not as they are missing the deadline.  

Honestly I’m not sure we would’ve gone through with the deal had we known the obstacles we’d be up against, everything from the hurdles in lending, contractors not meeting deadlines, incomplete units that are still un-rentable,  etc.  

File a lis pendens concurrent with a suit for specific performance (Forcing the seller to close on the deal).

My wife and I have been filing our taxes as Married Filing Separately due to my wife's hefty student loans.