Start-up costs are also deductible but are amortized over 15 years with a limit of 5k.Start-up costs have strict rules and your case might not be the same as this one.Case Summary:Timeline line of eventsStarted investigating property: FebPut first contract (canceled): MayBought first property: December 30thWhether a taxpayer is engaged in a trade or business is determined using a facts and circumstances test under which courts have focused on the following three factors that indicate the existence of a trade or business:Whether the taxpayer undertook the activity intending to earn a profit;Whether the taxpayer is regularly and actively involved in the activity; andWhether the taxpayer's activity has actually commenced.On the basis investor testimony, we may assume that he undertook this activity to make a profit and that he regularly and actively engaged in it.

Hello everyone,I find myself in a challenging financial situation and would greatly appreciate any guidance you can offer.I have a pending income tax payment of approximately $200K for the year 2023, due by September 10.

Since you're a cash basis taxpayer, I think the rule is that you can deduct the full amount.

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Hello everyone,I find myself in a challenging financial situation and would greatly appreciate any guidance you can offer.I have a pending income tax payment of approximately $200K for the year 2023, due by September 10. 

No W-2 limits.There is an excess business loss limitation, but that's $578,000 for married filing joint taxpayers.

Agreed with @Ashish Acharya point above.One thing to add, bonus depreciation is available for used property placed in service after 9/27/17, however it is does not apply to the portion where the taxpayer previously had a depreciable interest.

Quote from @Julie Garner: I'm surprised that someone who recognizes the illegal importation of often unvetted individuals would seek to find yet another way to fleece the taxpayers.If our elected can fleece taxpayers, should those in real estate also have the same right? 

Ask your accountant about de minimis safe harbor or safe harbor for small taxpayers.

Passive activity losses are those losses from activities in which the taxpayer doesn't materially participate.