@Christopher Brainardin this scenario IE a wholesaler trying to slip contracts for SFR homes .. seller is not going to sue you for performance.. this would be so rare as to be something not to even think about.. unless your a multi millionaire and known to the community to have tons of dough maybe then.. but if your just like the rest of us out there in Real estate land no seller is going to sue you for performance.. they may not sign your cancellation agreement out of spite .. then you have to go to small claims over your EM

(It drives me absolutely nuts when I see yahoo wholesalers pitching "rental" make readys or claiming that a home is "rent ready" when the home is pretty much worn out and only has  a few years left.)   

The advantage of claiming a Capital Gain is no Self Employment Tax added (15.3% more).When starting out it's not so critical that you have a Real Estate Specific CPA.

I say this as someone who has in fact filed a title insurance claim because they didn't include something on the Prelim that they should have, resulting in me, by name, getting a court summons in the mail over something the previous owner did not do that they were supposed to do.

Each realtor could claim either one zip code or multiple zip codes of their choice and would pay a monthly amount to "own" each individual zip code, meaning all leads/submissions that come in would go straight to them and to no other realtor.

Because it's already foreclosed I can't negotiate something with her to quit claim it to me and then work a short sale for her. 

This did not sound right to me, i believe you cannot deduct your "rent" from the income of the property, you are the owner ( unless it's under a corp and you pay rent to the corp - possibly) That is considered your personal residence and all deductions need to be pro rated. here is an article to read: http://finance.zacks.com/tax-deductions-owneroccup...I would consult with a CPA on this, and BTW in your example you would both want to claim $400 so each had full deduction, not $0 for him.

There simply isn't enough to go off of at this point in order to make the claim of interest only via amortized as Melissa mentioned above.

Also if you only have the main house as a rental and the guest house is your vacation spot you are only allowed to claim depreciation on the cost basis of the main house and the guest house is non-depreciable since it isn't rental property it's personal property.

They also stole a few thousand dollars worth of materials when they finally got fired, claiming that the materials were stolen from them.