Simple resolutions merely indicate the direction a chamber of congress should move toward. 

And if the tenant has stayed for over a year and is now month to month, then the landlord has to give 60 day notice.When you have a defined end date, as every yearly lease does, there is no requirement to give notice at the end, and is merely done out of courtesy.I never do month to month.

No such thing as a good or bad return....the return merely needs to be appropriate to the amount of risk you are taking on, and you have to be comfortable with that risk premium. 

Account ClosedGenerally you do not get audited for merely failing to report dividends, interest, etc.The IRS will usually send a CP-2000 notice with a proposed tax/penalties/interest amount after their computers throw a matching error.Doing an audit uses Service resources. 

Is the tenant merely rude or rude and unreasonable?

Qualifying your wife as an RE professional might be extremely tax advantageous.  750 hours is just one of two prongs however...and qualifying as a real estate professional merely opens the door. 

The Department of Defense prohibits it (SCRA for service members).You would typically see "Borrower must be in imminent danger of default or no less than 90 days past due" in a short sale package in 2014, maybe even up to 2016 but i'm confident no lender/servicer still in business would be stupid enough to try to get away with that today.A servicer CAN say, "Wait, you are current, you have income, you have assets, no, we aren't going to approve your request to consider a short sale" but their denial would be based on a lack of any imminent danger of default after a full short sale package was submitted and reviewed, not on, "borrower is not delinquent" and they would never say (now) "Borrower must be behind in payments for consideration". for military though, even if they are current, have income, have assets and are not in danger, the mere presentation of PCS orders (relocation) requires the servicer to consider (approve) a short sale request).

Your information is pretty vague (lack of clarity on just how much operating expenses are versus actual income potential), so I am merely making my call based on very limited information. 

If a ruling request is a viable option (and assuming this is an area the Service will rule on), you would need to pay a fee for the Ruling and professional fees to draft the request.Remember this is all merely conjecture on my part, all of this needs to be fully reviewed by a competent practioner before you decide to do anything. 

These losses are not wasted but merely postponed until you sell.