It's great to ask these questions in the forums to get a feel for things but it's not a substitute for getting "official" advice from an REI-savvy tax pro that you have hired.Regarding what to deduct versus what to capitalize (and depreciate over time), your tax pro can walk you through that for each line item.

But I'm not sure what that has to do with carrying a large mortgage where you are just breaking even and speculating that property will continue to appreciate.  

Make sure your lease stipulates its a "shared property" and list all the rules to make sure they toe the line, garbage, one vehicle(where parked), noise, no personal items in yard, everything you can think of or choose/whatever.

It's always a plus when you can get your property valuation increased and the tenant pays for the new item, just so long as your downside risk is mitigated, too.Good luck!

Any excess is carried fwd as an NOL.

I didnt see my tax bill showing a line item.

You are the member of the LLC not an s corp or a c corp which owns the LLC - which is more traditional in syndications and other setupsSo that’s the confusing thing…They list as not exempt:1) corporations2) LLCs where one member is a corporationI feel like item 1 would disqualify ALL LLCs (since they are corporations).

My first six Section 8 tenants I did not get paid for first four months AFTER the tenant moved in, so I had to cover those carrying costs out of my pocket.

Do I understand right that you carry the remaining depreciation from your upstream property into the DSTs?

It's just a seller carry & the seller sells the note.