It will do NOTHING to help the economy, but cost the taxpayers a bundle.

Governments putting us into the hole and then reaching into taxpayer's pockets to pay for their mistakes.

There may be an "if" to expense this for taxes under the Safe Harbor for Small Taxpayers, but that is a big "IF".As a major component of the HVAC subsystem of the building unit of property, we'd place this in service with a recovery period of 27.5yr or 39yr under GDS, depending on fact and circumstance.Form 4562 reports depreciation and amortization, as well as property put into service during the year, but you're unlikely to divine knowledge by examining the form. 

Until you get to the point where your rentals are netting positive, at which time you'll consider sending in quarterly tax payments.

I'd agree with it from the standpoint that almost anyone could go out today, buy a house to rent out in a nice growing community, and in 20 years (provided they had the capability to make the mortgage and tax payments) they will think it was a wonderful investment 20 years later.

Any taxpaying entity can do a 1031 exchange.  

The FHA announced they are deeply underwater, and may need tax payer bailout.

I'd partner with a pre-fab home builder and build duplexes (SFR with ADU) as fast as possible on vacant single family lots all throughout southern california and rent for $1500-$2500/monthIn 3-5 years, sell part or entire portfolio like an apartment building to 1031 investors looking for a 5% Cap rateanother idea, might be to build bomb-proof motels to house homeless ( something like motel 666) and undercut the homeless industrial complex currently charging taxpayers 500-700K a unit.

An individual qualifies as a real estate professional for the tax year if [IRC Sec. 469(c)(7)(B)]—a. more than 50% of the personal services performed by the taxpayer in all trades or businesses during the tax year are performed in real property trades or businesses in which the taxpayer materially participates;  The rental or any other activity that you do not materially participate in cannot be counted. andb. the taxpayer performs more than 750 hours of service during the tax year in real property trades or businesses in which the taxpayer materially participates., the rental or any other activity that you do not materially participate in cannot be counted.

Generally, if any of the taxpayer's rental real estate activities are held as limited partner interests, the combined activity is treated as a limited partner interest.Because limited partners have only 3 test out if 7 tests available to prove the material participation, it sometimes might not beneficial.