Quote from @Kathleen Park: I recommend you educate yourself on "ordinary wear-and-tear" vs damages, depreciation, and your state laws.Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO.

Normal wear and tear refers to deterioration over time from ordinary use, but damage like a large oil stain in the driveway from a vehicle is preventable and would fall under tenant responsibility.

Some podcast make it seem like you can use real estate as a loophole to pay capital gains tax where you would have paid ordinary income tax.

Yes, the costs for utilities, insurance, repairs, and maintenance are deductible in the current year since they are considered ordinary and necessary expenses for managing and maintaining the property.

Part of each payment will go towards interest (taxed as ordinary income).This setup allows the seller to avoid paying the entire $300K in gains upfront and spread it out over the years.

Abraham, for your fix-and-flip property, it’s important to note that these projects are typically taxed as ordinary income rather than as long-term capital gains.

To claim these, you’ll need to keep detailed records, including receipts, the purpose of the meetup, and how it relates to your business, as the IRS requires proof that the expense is ordinary and necessary.

It looksSelling now would subject you to short-term capital gains, taxed at your ordinary income rate.

Rental income, after allowable deductions, is taxable as ordinary income.Business Licenses and Fees: In BBL, you'll need a valid business license to operate an STR.

They do a private loan at 12% and are paying 7% on a HELOC The money you make in interest is taxed at ordinary income.