The question in fact was more of a billing/receipt question to verify an amount I had paid to RLS and had been informed at the initial consultation with them that this amount would be tax deductible. 

Hello all, we are very green in understanding tax strategies for STRs and we're trying to understand how/what STR tax deductions can be captured for primary residences. 

Redfin Estimate is approximately $1.35m.Questions:Can I deduct rental depreciation from my W2 income?

These are some of the ways the clients could be affected by property managers who are not prepared: Extended VacanciesInadequate marketing strategies and tenant screening processes can result in prolonged vacancy periods, translating into substantial lost rental income.High tenant turnover due to poor resident relations further exacerbates vacancy losses.Inadequate Maintenance and RepairsNeglecting preventive maintenance and delaying necessary repairs can lead to accelerated property deterioration and higher long-term repair costs.This can also negatively impact tenant satisfaction, contributing to higher turnover rates.Legal and Compliance IssuesLack of knowledge or disregard for landlord-tenant laws and regulations can expose investors to costly legal disputes and penalties.Failure to properly handle security deposits, evictions, or fair housing practices can result in significant financial liabilities.Ineffective Financial ManagementInaccurate budgeting, expense tracking, and financial reporting can lead to uninformed decision-making and missed opportunities for cost savings.Failure to optimize tax strategies and leverage available deductions can further reduce net returns.Diminished Property ValueInadequate maintenance, high vacancy rates, and poor tenant screening can negatively impact a property’s perceived value and appreciation potential.This can significantly affect the long-term return on investment when it comes time to sell the asset.While a 10% management fee may seem reasonable for a well-performing property manager, the cumulative impact of mismanagement can quickly escalate the effective cost to investors, potentially outweighing any perceived savings on the management fee itself.

 @Shravan Hemchand Prior to pulling the trigger on a Cost Seg study, you should evaluate 2 things:1 - How much net additional deprecation tax deductions a Cost Seg study would provide: Best way to get this is by requesting a free feasibility analysis from a Cost Seg provider.

When you buy multiple REI's those will replace and also become a $500K Tax deduction.

You have a responsibility to try to rerent, but losses related to that can usually be deducted from a deposit.

I think the taxes work themselves out because you get to deduct the lower interest paid on the mortgage.

Everyone makes mistakes now and again when filing a tax return whether it be forgetting a deduction, missing a portion of your income, or improperly depreciating an asset.

On the other hand, I would use a BLOC in the name of my business for deductible financing, that won't clutter up and impact my personal FICO score.