So when you receive a payoff from the borrower, amounts above your cost basis is a gain.  

I read the knoxville newspaper and I read it everyday to see if the new foreclosure list is available. 

Of course, you're a real estate pro and you know every day there's a new seller somewhere.  

\,,,,the lender is just interested in the sellers income and ability to pay.In a word ,,one guy says can & one guy says you cant and I like and respect both these guys and have spoken to them many times.Both have great reputations.Needless to say this really changes the "Paint Job" on my explanation of Lease Purchase to possible Sellers and  Tenant  Buyer Candidates I talk to every day trying to do Lease Option deals and I need to form an intelligent opinion about this issue.Any help greatly appreciatedDave Doyle

\,,,,the lender is just interested in the sellers income and ability to pay.In a word ,,one guy says can & one guy says you cant and I like and respect both these guys and have spoken to them many times.Both have great reputations.Needless to say this really changes the "Paint Job" on my explanation of Lease Purchase to possible Sellers and Tenant Buyer Candidates I talk to every day trying to do Lease Option deals and I need to form an intelligent opinion about this issue.Any help greatly appreciatedDave Doyle

Cost basis of securities is around 1/3rd of the sale.

I have a couple of individuals who loan me money at a flat 12% on an as-needed basis.

For those that have, let's say Florida, every default date on an on-going basis through the amortization is serving as the base to start the clock.  

The home is paid for.Since I will be available everyday literally next door for maintenance, guest assistance etc (I am retired) what are my options tax wise...I believe I can treat the home as a business or as a vacation home for tax purposes.

Not bad.Here is where I am after going to house 9 times in 2 weeks and coming up with more ideas everyday...