Eviction costs are expensive lawyer fees etc. and owners have less and less rights these days in California depending on your maintenance upkeep and habitability there could be judges that would side with the resident.

I was hoping to maybe get the land declared as agricultural so I can save on the taxes.

One deal in California will beat 5 of your "going well" houses in Kansas every day of the week.Also, if you're borrowing money from people in California and moving it across state lines AND promising them "a certain rate of return" you've just entered into the securities world and you better talk to a lawyer or you might end up in front of a judge if one of your "going well" deals turns sour and your lender feels like you burned him or her.

The penalty for non compliance can be as servere as losing the property backing your note, loss of 3 years principal and interest, or anything else a judge decides to punish with.  

Rental income is declared on the 1040 Schedule E form with all the related expenses. 

And of course then one still needs to go to a local (within the state the deal is being done, if not the specific city or town) to see what 'legal precedents' are on the books there, so if there's ever an issue(s) the local judge will in turn side with the LOer, vs. the buyer(s) and/ or seller(s).

It is the public pol-icy of this state to provide children in a family daycare home the same home environment as providedin a traditional home setting.The Legislature declares this policy to be ofstatewide concern with the purpose of occupying thefield to the exclusion of municipal zoning, buildingand fire codes and regulations governing the use oroccupancy of family day care homes for children, ex-cept as specifically provided for in this chapter, andto prohibit any restrictions relating to the use of sin-gle-family residences for family day care homes forchildren except as provided by this chapter.

It is very possible in the case of an audit tha the IRS will determine that whatever was stated in the agreement is not appropriate.Now, I am a CPA, not an attorney, so I am not qualified to speak to the applicability of a particular court case to your specific situation, but please see below the reasoning of a Tax Court judge in Nicholson v.

Just the carpet statement the judge will laugh at the landlord.

ANy ideas guys...i can send pics if needed & you guys be the judge...HELP...i am  scared but happy overall.....