My lease says tenants are responsible for ordinary pest control, which would include birds.

IRS might see this as a flip property and charge you ordinary plus self-employment taxes.If this is the first property you were selling and you’re not gonna do this again and again, you might get away from not being self-employment taxes.

One camp says losses offset the capital gains first and the remaining losses offset the ordinary income up to $3,000.

Originally this was our family home that we bought from a builder around 2005 and then took out a HELOC to do landscaping, air conditioning, blinds, patio, and other stuff that a new builder home needs. 

@Wesley Mullen,TL:DR- look at some differing viewpoints and make a decision that is best for and your family.Soap box ensues.I’ll give you what appears to be the sole dissenting view-the money in your 401(k) gets taxed as ordinary income when you withdraw it in retirement.

Often times 1 mo rent for new leases, 1/2 month rent for renewals.What is the condition of the HVAC, water heater, roof and gutters, patios/decks, fencing, etc?  

@Mark C.You cannot 1031 a loan.Also mortgage interest received plus the monies above your basis would not have been long term capital gains it would of been taxed at ordinary income.

However, according to our By-Law/Master Deed, Garage is considered a part of "Limited Common Elements".Specifically, from our Master Deed: The Limited Common Elements of the condominium shall include any deck, patio, stairs, or garage to which there is direct access to that unit which is appurtenant to same, or any car port to which a Unit has been assigned....These Limited Common Elements are reserved for the use of the Unit(s) either immediately adjacent thereto or for the use of Units to which they have been assigned, to the exclusion of all other Units....Any expenses of repair or replacement relating to said Limited Common Elements, or involving structural maintenance, repair or replacement, shall be the responsibility of the Association, excepting for costs necessitated by negligence, misuse, or neglect of the Unit by a Unit Owner.One day, someone (not anyone I know) likely backed into our garage and crashed the garage doors.

The value add deals are ones that will make you are great return on your money, the value add ones are the properties that you add square feet that no one else sees (adding 200 square feet in a patio that already has a roof over that patio), adding an ADU, adding another unit, etc. 

Now - The White House plan would instead tax capital gains as ordinary income, at a top proposed rate of 43.4% (including medicare tax).