"Is it a common practice to report it as a loss even though I fixed it out of my own pocket?" 

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

Those seem like questionable practices to me.Great stuff from your own experience here.

The median sale price increased month over month breaking the trend of decreasing median sale price the past two months.The rental market continued to moderate in Q3 2024 thanks in part to the increase in units being built. 1,815 units were completed in the year ending with Q3 2024 with 1,447 expected to be completed in the next four quarters.These new units brought online in the past year increased the overall inventory by 3.4%, however by Q3 2025 we anticipate demand to outpace supply by over 550 units.With this increase in units over the past year we have seen the occupancy rate moderate at 95.8%, down from the high of 98.9% in 2022.

When looking at my tax return from my CPA, the losses and gains show up on Form 4797 (Part I for the losses and the gain in Part III).I noticed that the loss from Part I was shown on schedule 1 line 4. and helped zero my taxable income in Form 1040 line 15 (I had a negative total income on line 9 and 11).

Yes, this is quite a common practice for professional PM companies.

This is standard business practice - just look up how many settlements the SEC makes annually where companies pay millions in penalties WITHOUT ADMITTING to any wrong doing.- Cash-for-Keys is another example of this!

Is there a best-practice on how to do this or can you share pointers from experience?

We have lots of automated processes - All online rent collections, inquiries, signature requests, and late fees.

Condos are starting to get condemned, which means people are having to vacate units.I'm telling you right now, I'm a JD (not a practicing attorney) in Florida whose business is being an insurance expert for carriers, working with engineers.