That said, deductible would likely be $500 or more so how many nights would they need to get a hotel for instance and what would it cost?

This shed was over $2500 so I'm thinking it would have to be amortized as opposed to a deduction in one year. 

They know you likely wouldn’t file a CA tax return - since you live out of state - so they found a way to make sure you do.Since you are losing money, most likely you can deduct losses against income and get the withholding back when you file a CA tax return in April.Confirm this with your tax person.

Hey Joey,Cost Segregation and REPS: Yes, you can perform a cost segregation study once your wife qualifies for Real Estate Professional Status (REPS) and use accelerated depreciation to offset your W2 income in subsequent years of renting the property.Purchasing Another Property: It can be beneficial to purchase another rental property within the first 5 years to continue maximizing depreciation deductions.

But, there is a credit available for taxes paid to other states to deduct from your CA tax bill to somewhat avoid double taxation. 

I said yes, and he mentioned that he would deduct the cost from the rent.

That's how you scale it, just put all your extra income into marketing and it will be fully tax deductible (it's your expenses after all).

The K1 could show you have ordinary income, deductions, capital gains etc depending on what the investment opportunity was and how they managed and exited the investment vehicle.

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.

You'd be surprised, it could be fun and you could be forced to take a tax-deductible trip to your property once in a while. it could be a nice lifestyle + profit combination.In any case, I think it's great that you made those comments .