I have a group of reliable contractors and an intern, to help me out, my books and paperwork are done professionally by a firm etc. 

Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it's earned, and expenses when they're billed (but not paid).

@David SegalThe speculative builders tax is part of the Arizona Department of Revenue’s Model City Tax Code, Article IV, Section 416.

Otherwise, you are stuck renting the homes.However, you can still internally allocate that home rent however you want, and you should push as much of the rent as you can into the lot rent pile.

High rent to lower acquisition point is a huge factor, but please don't ignore all the other factors - net migration, income growth, path of progress, job diversity, legislation, taxes, personnel in the area to build a successful team....etcI heard on a podcast the other day that your internal team is like your golf swing and the area you choose is the golf club you select. 

- sharing of revenue profits or losses- sharing of capital gains or losses- is any payment to be made to either other than as share of profits, eg for ongoing services- will the participants be operating a ‘salary/dividend split’ – ie taking their month by month requirements by way of low salary, balance as dividends?

I'm in Florida, so numbers may not be exactly the same, but.... if you are not able to get around 70%-80% occupancy rate for a vacation rental either the property is not up to par, the management or pricing is off, or the location is not an STR-favorable destination.I also agree that for vacation rentals analysis you need to look at ANNUAL gross revenue, not an average nightly rate.

The good people at the department of revenue in MO were quite cryptic and said I needed to 'fill out 0' every year on form 53-1. 

I used internal referrals to get a fellow agent in PA, she wasn't anything special but she got it done, and I got 1/3 of the commission.

2) keep the Utility payments as your own revenue as the revenue was recognized during your ownership?