The goal is to create paper loss and offset your W2/business income.

However, consider the impact on the current bathroom-to-bedroom ratio and whether the loss of the open loft space might affect some buyers' interest.Vancouver's real estate market has been strong, with increasing home values.

So other investors in the project want to sell as cash flow is not good and take a loss but I want to look at alternatives where we could get better cash flow for the future and it seems like section 8 pays more than market rate in the zip code.

Every cost adds to my basis in the property and the profit or loss is realized only when the property is sold. 

We are very much in hard insurance market with most carriers having a no loss rule going back 3 to 5 years depending on the carrier.

Lenders are gonna want to see profit and loss statements, rent rolls, property condition assessments, the whole nine yards.

The moratoriumon evictions during the winter should be amended so that onlytenants who face job losses or other hardships are protected.

It's still not a total loss though, I'm still going to get most of my expenses paid on it, just not all of them now. 

Rather than take a complete loss on the uncollectable debt, can I take the assigned debt, make collection efforts and upon failure to collect declare the loss to offset the capital gains?

I found someone on the internet who told me about the avocado farm and he gave me the bad news that there are tons of lawsuits against the company and to count it as a total loss.