Too many STR owners claim they are bringing in $80,000 a year, but they don't tell you how much they actually net after deducting all the expenses.NOTE: almost every STR owner cheats on their numbers.

Sadly you would need to either have a spouse qualify for REPS (you cannot due to w2) or either make under 100k per year so you can deduct up to 25k of losses per year and actively participate(this is different then material participation). 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Here is why there are no responses to your question: it's tricky.Prior to the 2018 tax reform, there was a deduction for personal moving expenses.

Remember your closing cost deductions and resale costs.  2. 

Unless you choose to have the LLC taxed as a corporation, the income and deductions (including depreciation) flow through to the LLC's owner(s).Second, you can invest the inherited IRA as a self-directed IRA, even though you are not the decedent's spouse.

These trips are generally tax deductible.

Only the expenses related to the rental portion can be written off.Allocation can be based on the square footage of the rental area relative to the total square footage of the house.As for your deductible expenses, you will need to allocate the expenses between the personal and rental portions of the house.

Clear separation helps demonstrate that rental properties are business activities.Bookkeeping Accuracy: It’s easier to reconcile and categorize expenses when they’re all in one place, reducing the chance of missing deductible expenses.Professionalism: Separate accounts show a more professional approach to managing rental properties, which can be beneficial if you seek financing or partnerships.2.

This includes declaring rental income received and deducting applicable expenses such as maintenance, property taxes, and mortgage interest related to the rented portion.Once Cousin B acquires 50% ownership, they will begin reporting 50% of the rental income and associated expenses for the portion they now co-own.