Best to talk the tax issue over with a CPA but the loss will be reflected in the K-1's and can offset gains in other deals, provided they both flow through to the same entity (or you personally).

At what point in your RE Investing journey did you hire a CPA to do your taxes?

Your CPA would then utilize the results of the study to plug into your tax return when filing your taxes. 

If you are teaching this to children the nuances of the net worth equation as far as a CPA would do it correctly- are probably going to be lost on them.

Talk to your accountant , CPA, and attorney. 

@Michelle SangalangDid you try asking your CPA for his/her suggestions in this regard?

I would reach out to a CPA to confirm this. 

I believe you can convert your primary to a short term rental without an issue (but check with CPA).  

A financial planner, CPA, and others may be better resources for you in deciding which is the best play here based on the immediate health needs and life expectancy.Hope this helps. 

Also, a good CPA to help you set up your books with allowable expense categories and to answer specific questions.