A tenant took me to court for this issue, what i found out is that you can keep it in any account you wish but you have to notify the tenant (in writing) of the location and rates they will be accruing.

Follow the money and consider if accruing paying participants in whatever is the focus.

Renew the judgment, plus your accrued interest, plus your "legal costs", before the ten year mark, or the judgment becomes void (along with the abstract).

The county will do that.If paid prior to 30 days after sale the property owner would have to pay the full amount of delinquent taxes + 10% + daily interest accrued (a very small %).

., booking management, repairs, advertising, tenant communication), as the IRS may closely scrutinize these claims.Keep supporting evidence such as receipts, invoices, emails, or calendars, which can strengthen your position.Differentiate personal use vs. rental use of the property to avoid reclassification issues.Understand potential recharacterization risks—without proper substantiation, the IRS could reclassify your STR income as passive, resulting in additional taxes, penalties, and accrued interest.Review annually with a tax advisor/EA to ensure your activities align with current regulations and to optimize deductions (e.g., depreciation, repairs vs. improvements, start-up costs).Failure to follow these requirements can significantly weaken your position in case of an audit.

All in all the distributions were paid slightly lower than initially expected while the remaining is accrued. 

The 5th is Accrued Depreciation. 

As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month.

.: Massive loss of accrued interest and principal????

They are hoping next year, after the litigation is complete, to return the other 50% of the outstanding principal plus accrued returns.