Hi all, I purchased a 2 unit that has a shared basement arrangement for utility/storage purposes. 

If it's going to be a business, your goal isn't really an amount to make, your goal should be something that is contributing to a business purpose, an industry goal, like providing affordable housing.

Honestly, it sounds like it *could* be beneficial to purchase the house for your original intended purpose if the cable doesn't conflict with anything.

The purpose of the tax is to level the playing field for taxpaying businesses, so that they are not driven out of business by tax-exempt competitors.Flipping is a trade or business activity, as opposed to passive income such as rentals or hard money lending.  

If more than 1 issue is included in the request, return the request to be broken into different tickets (this has a real practical purpose. 

My wife and I recently purchased a rental in Shawano near our vacation home for tax purposes.  

@Kevin BrinkmannYour assessments are correct.If you are using a note servicing company, they should handle both the 1099-INT to your Solo 401(k) plan and the 1098 to the borrower.It is possible to submit a W-9 to the servicing company (or any party issuing income to the plan) that shows the 401(k) is tax exempt, in which case they may choose to not to issue the 1099-INT, but generally speaking they will want to do so for their own compliance purposes simply to document the income paid out.  

For what purpose?

But for all purposes it seems like you are the bank and you get a certain rate while the person pays it back.

I drop off opportunity loss costs and capex/vacancies for my own purposes, though I do have strong reserves for the latter and a reasonable feel for the former (I have virtually zero vacancies, all of my units start completely rehabbed, and I keep an eye on other opportunities should I wish to sell and go into something else).I don't have to micromanage this aspect because I have a good mix of free & clear and lightly leveraged.