On my spreadsheets I’ve always deducted 8% (sell costs)  from the actual equity on my properties but I haven’t thought about all the grainy details until now!

We also deduct 10% per month from the top of each rent payment, then around October we evaluate the property P&L.  

What I am unsure about is if the whole 60-40 rule around payroll deduction vs owner distributions within an S-Corp can still apply in this situation if the filing entity will only be the S-Corp but the payments are made out of LLC #1, the disregarded entity owned wholly by the S-Corp.

If the tenants fails, you can have a professional take that over and deduct the costs from the security deposit.

I have an investment property and looking to see what property insurance I should switch tooOption One – Has a $2500/2% Hurricane Deductible.

However, it's crucial to comply with IRS rules and limitations regarding passive activity losses, which can affect your ability to deduct rental losses against other income.

If you have a lot of deductions and the amount you show as "real" income on your returns is low, this will be problematic for FHA financing.

There is a fairly new 20% pass through deduction you may qualify for that could help you, but not everyone qualifies.

If so, how can I minimize the rebate I give them - if the rent is say $5000, do I say fridge is $100 and dryer is $150 so ok you can deduct say $(250) * 2weeks/1month = $125. or do I say ok send me your bill for food and laundromat and you can deduct that full amount (that will be expensive I guess).If I'm not liable how do I reply that doesn't have ramifications.

The bonus here is you can write off the milage (if you deduct by the mileage method) for your travel to pick up your mail.