This general log gives an overview of your activities, but it might not be detailed enough for IRS purposes.Example 2: Detailed LogMonday, 7/1/247 AM - 7:30 AM: Monitored security cameras1:30 PM - 2:15 PM: Responded to tenant question regarding parking3:00 PM - 3:30 PM: Monitored security cameras4 PM - 4:15 PM: Checked mail and delivered to tenants, as necessary7 PM - 7:30 PM: Monitored security cameras10:30 PM - 11 PM: Monitored security cameras7 AM - 11 PM: Remained on standby all day for tenant needs/emergenciesThis detailed log breaks down your activities into specific time slots, which can provide a more precise account of how your time was spent.Best Practices for Record-KeepingBe Specific: Break down your activities into smaller time intervals, as shown in the detailed log example.Use a Logbook or App: Consider using a time-tracking app or a dedicated logbook to keep daily records.Document Standby Time: Clearly note the hours you are on standby for emergencies, but also separate it from active tasks.Include All Activities: Document everything from advertising to maintenance and tenant interactions.Consulting with a Tax ProfessionalGiven the complexity of qualifying for REPS, it's always a good idea to consult with a tax professional.

If you create a new partnership then you are not meeting the same taxpayer requirements of the 1031 exchange. 

It seems risky to continue to defer and eventually be stuck with the taxes on that depreciation when I would sell, I could do a 1031 exchange but will it eventually be recaptured at some point correct?

I don't post here often, but I do like what Henry Clark had to say earlier about choosing properties that have been on the market for a LONG time.I used that strategy for a 1031 exchange from a small condo to a 6ish thousand square foot commercial office building (no experience).

But when I said no this time, tenant wanted to exchange words with the contractor.

Coordinating a same-day sale required precise timing and efficient communication.

Otherwise the 1031 Exchange is worthless.

Coordinating a same-day sale required precise timing and efficient communication.

Arbitrage is a high-risk thing that depends on precise knowledge and process.

I think some of your exit strategies could be to reposition and add some unique features to your rental to attract more renters and potentially drive a higher price, 1031 exchange and move it to a different area or even market.