Keep in mind that some of these obnoxious transfer taxes are not considered state or local taxes for tax deductions but rather increase the basis of the property as part of acquisition costs.

If so, would this allow me to deduct rental expenses below the amount of your rental income?

She is 1099 her 2023 taxes are great but 2022 has quite  few deductions and does not have 5 years of the same 1099 experience.

@Jovani E.When you say it cash-flows $216 per month - that is after what deductions?  

You will still receive the same depreciation deduction per year since 27.5yr property is a straight line basis, just that the timings are a little different is all.

I’m fine with this, for now, as a long-term investor.I don’t believe our current situation would enable us to qualify as Real Estate Professionals, which would result in massive deductions.

Also we need to keep investigating about how can the interest and expenses can be deducted from filing. if you can share some of your experiences would be great. 

However, I believe i need to wait until i rent the property for those improvements to be tax deductible - is that correct?

This means they can be deducted from the landlord's other nonpassive income, even though $75,000 of the debt was cancelled by the lender.

I have heard that paying off your rental is not necessarily the best choice because of the deductions it allows for, but given the type of loan this house is mortgaged with, is it even possible to buy another home together and start renting this one out when I have a FHA loan on this one?