After you subtract out rent, utilities, internet, etc. we're still netting over $1k+ per month.  

Have that individual report everything and then have an other deduction subtracting out the 50% to be reported on the other partners return. 

It appears the formula for calculating the > than 50% rule, subtracts the hours on short term rentals (or rather adds them to the w2 hours) in the calculation.

But what if we paid down the mortgage… the total expenses minus the mortgage is $37,446, subtract that from the $100,000 and you get $60,954/year or $5,080/month.

Just like wholesalers who subtract the rent from the PITI and say that is how much 'cash flow' you're going to get... not taking into account vacancy costs, utilities, maintenance, etc etc.

Basically what you are left with after adding back all these items is the gross rent less any deducted expenses, and then the PITI and HOA dues are subtracted to come up with a net monthly net income figure to use to qualify.

In fact, when I buy a rental house, the value that we use in calculating the depreciation has to take the purchase price and subtract from that a land value - because there is no depreciation for the land.This is the difference that I think you are looking for ...

We always have a few rehabs in the loop to keep the machine running without any downtime.For profits, we calculate all our rehab projections, taxes, insurance, utilities all holding closing and selling costs as well as  interest on a six month hold period then we add in 20k for profit subtract from sell price and that's the max we will pay for a house.

You would need to subtract that from that 12k a year since you won't be able to write off any interest going forward.  

I would assume so, but it's best to check with the lender to see how they interpret official FHA guidelines which read:"Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s estimate of fair market rent from all units, including the unit the Borrower chooses for occupancy, and subtracting the greater of the Appraiser’s estimate for vacancies and maintenance, or 25 percent of the fair market rent."