So, when you replace something and make it bigger, better, or last longer, it’s categorized as CapEx.On the other hand, repairs are generally routine maintenance tasks that keep the property in its ordinary operating condition.

This article from Realtor.com in 2016 points out eight of the largest differences: https://www.realtor.com/news/trends/red-vs-blue-states-polit...Regardless of political affiliation, the simple truth is that more government involvement almost always results in more problems for ordinary people.

Operating expenses are routine and necessary costs to keep the property in its ordinary operating condition, and they are typically deductible in the year they are incurred.You also mentioned the benefits of classifying something as an operating expense versus a capital expenditure.

real estate is a great long term wealth builder, but in the short term - 1, 2, 5 years - it actually takes quite a bit of cash and investment, especially in plain, ordinary long term rentals.  

Ok so it's nothing really out of the ordinary.

I've been a RE developer for nearly 20 years and I guide ordinary people to redevelop communities in an impactful and profitable way.

Every accountant I have ever talked with has always had it as Interest income and taxed at ordinary rates?

Slightly worried about higher personal retaliation or damage to property than if I were driving an ordinary car, incognito car.Thank you BP!

1. you could structure it as interest only, and the lender would pay ordinary income tax rate on the interest paid. even if interest rate was 0% they would still pay around 4% (FAR rate) in taxes.2.

The individual merely acts on behalf of an actual beneficialowner as the beneficial owner’s nominee, intermediary,custodian, OR agent.Note: Individuals who perform ordinary advisory or othercontractual services (such as tax professionals) likely qualify forthis exception.