If the withdrawal is repaid, then amended tax returns are needed for 2020 and 2021 to recoup the income tax payments made on the withdrawal.

Some are advising that this carryforward can now be applied to 5 years of prior period taxes paid and refunded for those amounts AND the taxpayer would get a check for amount of the carryforward if there was no prior period liability.

I did find out there is an IRS Federal Tax Lien "on all property and rights belonging to the taxpayer."

They are disqualified because they are considered an agent of the taxpayer.

They're stonewalling additional requests by my mortgage broker for information and won't disclose tax payments or insurance payments.

Btw, it should be noted your HUD tenant is already receiving a subsidy courtesy of the US taxpayers, so any talk of "fairness" should probably keep that in mind.The rest of the decisions should come pretty easy after you figure this first part out.  

No, not income.Would have to see the settlement statement and county property tax statement to be sure, but generally it is a reduction in your property tax expense for the applicable tax year as that is the seller's prorated portion of property taxes for the portion of the year he/she owned the property.It's generally a current liability that hangs out on your balance sheet until the next property tax payment cycle.

This allowance is phased out for taxpayers whose MAGI exceeds $100,000 and eliminated entirely when it exceeds $150,000.

It is a determination based on the reality of the relationship between the service provider and the taxpayer paying for the services.Not likely she'll be appropriately classified as an IC unless she sets her own hours, is free to perform the work without instruction, provides her own tools/supplies, and/or is otherwise involved in a cleaning trade or business for many clients outside of her parents, etc. 

Timing and frequency also are key contributors to dealer status.You may have to look at some court cases where the IRS deemed the taxpayer to be a dealer in a situation as close to yours.