I want to take advantage of the 0% LTCG rate up to 90k-ish MFJ + standard deduction, but if I use all of my capital losses realized in 2022 against all of my income from 2022, I will show zero income.

However I feel like we are missing out on tax deductions for the business, since those transactions are not being made from the business’s account.

From there you need to deduct your expenses to get an estimate on performance.

Here are the projections for 2024 to give an idea of expected returns:2024 IncomeLong-term Income$8,400Gross STR Income$45,500 (based on AirDNA projections)Additional STR Income$5,915 (mostly cleaning fees)Total Projected Income$59,8152024 ExpensesSTR Expenses$16,453 (32% ratio)Mortgage$34,476Insurance$707CapEx$3,600Taxes$2,729Total Expenses$57,965Projected Cash Flow$1,850CoC Return2.79%2024 Additional ReturnsPrincipal Paydown$2,930Equity Appreciation$16,200Mortgage Interest Deduction$7,571Total$26,701Total Projected Returns$28,551Projected Return on Investment43.1%Projected Return on Equity21.4%The CoC numbers are not impressive, and the property only cash flows as an STR, which carries some risk.

I find it interesting that nobody really crunches the actuall numbers in Real Estate which I think is part of the cognitive dissonence we practice in order to make our investments look a little better.No 1031:Purchase: 120k, Sold 330k = 210k in just equityGross Rent: 220k - 60k expenses - 15k taxes = 145k <-- actual rental income$210k (equity) + 145k (rent) = 355k i.e. 355k -30k(closing) -50k(taxes) -25k(renovation) -14,500(recapture) = $245k=245k profit (including all rental income, tax deductions and appreciation.So if you had a mortgage, you would subtract the 145k in rental income and add 30k in principal.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Section 8 will deduct utilities that the tenant pays from those figures.David KrulacBigger Pockets Podcast #82   

The profit would only be calculated after all cost to include closing cost (realtor commissions included) were deducted.

I'd deduct at least $10k between lender/title fees and escrows, so now you're at $22k.

But, You really can't deduct passive losses onto your main 1040, especially since you are in the 37% bracket.