I can't modify how I view properties or rents.2.

The IRS considers fence replacements as improvements that extend the life or value of the property, even if it’s replacing an old, damaged fence.The depreciation period for a fence on a rental property is 15 years under the Modified Accelerated Cost Recovery System (MACRS).

Do you not have to modify a property such as many do with PadSplit homes but you can and it may be a way to increase your revenue per home.

Regarding Form 3115, we provide a draft form as a resource and reference for your accountant, for them to review and modify if necessary.

I believe in practice it does not actually offset the capital gains but reduces my taxable income dollar for dollar with the loss, as long as my Modified Adjusted Gross Income (MAGI) is under $150K.

Image to Image - There are many AI apps out there online that can modify images.

Sometimes when modifying a loan, if you are increasing the P+I, that could be considered a refinance, requiring you to re-underwrite (due to Dodd-Frank's requirement to show the borrower's ability to repay). 

There are some key limitations that are important:Passive losses can only offset passive income.Up to $25,000 in passive rental losses may be deducted against non-passive income if the investor actively participates and their modified adjusted gross income is below $100,000.Unused passive losses are carried forward to future tax years.Here’s an IRS article that further discusses the rules: https://www.irs.gov/publications/p9251031 ExchangesThis strategy allows investors to defer capital gains tax when they sell a property if they invest the sale proceeds into a “like-kind” property.

Also, I'm curious to hear – how does renting to C class tenants modify (if at all) the criterion for accepting an applicant? 

Sure, but you will find more fleas on an iron dog than you will times that a subpoena issued at the request of a government is quashed outright, or even substantially modified, before execution.When I referred to piercing the veil, I referred to piercing the veil of the trust -- finding out who the personal beneficiaries are -- not asking a court to declare one entity liable for the debts of another.