I checked with my lender to ensure that a quit deed claim is something they're ok with.  It's being purchased under my name.  I've upped my umbrella insurance as well.I live in Washington State.  Investment 1 is in Al...

Normally you are only entitled to a deduction when you are legally required to make the payment.However, normally people would just list all the expenses on the partnership return and distribute the K-1 to the partners.

Any help and guidance deeply appreciated!

I'll also pursue legal action if they do not refund my money within the week.

You need to study your state landlord tenant regulations and ask for a opinion from a legal rep familiar with the codes.

To my knowledge I am not  aware of codes that will legally allow renting a in-law suite.

I personally would rather lose a few bookings here and there, than put myself in any possible legal trouble. 

No legal advice given.    

That's the best way for a ton of legal reasons.

@Thomas S. so we can give advice and we won’t be in any legal issues?