A bonus "mud room" area at the back of the house features french doors leading to the stamped concrete patio in the fully-fenced backyard.

Instead, you book the asset and a liability and then reduce the liability each time a lease payment is made.The gain on the flip will come through as either short-term capital gain or ordinary income, depending on how regular, continuous, etc the flipping activity is.

AND you got a "free" roof/electric panel. ( you could also use this scenario if you'd rather install a solar carport or a solar patio cover to enhance desireability of home) Potential con scenario.

These rates are typically much lower than the ordinary income tax rate.4 days ago

Your tenants complaints don't seem too out of the ordinary.

I now manage it but in 2019, it was managed by others or a hybrid type management with me doing some things/they do some things.I didn't realized that it mattered about the manager, I thought it was treated as ordinary income regardless.

It's not clear to me if this is actually considered to "materially affect physical health or safety of an ordinary tenant" per 92.052(3)(A).

@Patrick Flanagan I am not a CPA, but from my understanding there is no way to take it over 30 years even if they seller finance it. it still counts in that year of the sale, that being said, long term capital gains is less than ordinary income would be, you can remind her of that.

However, the amount you withdraw is still subject to the ordinary income rates.

Getting something under contract is basically you saying "Assuming nothing out of the ordinary is going on here, then I will pay X amount for this property."