Basically, my question is how do I report business income/loss on my personal return when there isn't an actual business entity?

It basically seals in the odor.

That included gutting to the studs, joists, re-plumbing everything (tub and toilet were re-located), re-wiring, insulation, moisture-resistant drywall, new window, new basic tub, subfloor, underlayment, fairly cheap tile on floor and tub surround, sink/vanity from lowes, basic toilet, paint, etc.

It was inexpensive carpet, but it is all documented, and he lost his deposit, plus is in the process of getting a judgment against him for the balance.A TRUE professional carpet cleaner MAY be able to salvage it for you, depends on the basic quality and age of the carpet.

OK, I think we covered the basics.

Basically the deal is dead.

Basically, I look for the opposite of Detroit (where people are having trouble giving away houses for half what they paid for them 20 years ago - only minor exaggeration on this).

As I recall, these are pretty basic houses.

Try to get as much time as possible...so if you have a 45 day option for $100,000 and you find someone to buy the property for $110,000 you make the $10,000 (obviously it's more detailed than this, but you get the basics).

Basically the discussion came down to what to include.