And the Deed of Trust ties it to the property.On day of closing, the PML wires funds to the closing attorney (verifying the wire details by phone) and the attorney records the documents with the City electronically, completes the closing and sends the original docs to the PML.

Make sure you document any deductions and follow your areas rules to the letter.Best of luck.Carol

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.

Whenever I issue a payoff, I encrypt and password protect the payoff and wiring instructions document, then call the attorney with the password. 

Document all the times you think you conversed with the contractor.

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.

However, if you were to draft loan documents with a payment plan and interest, this would in fact be considered a loan.

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

No legal advice given.