Note this is far greater loss than the total average RE decline from the GR. 

Example: Tenant experiences a loss due to some house issue.

I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section.

Major vacancies and loss of income?

Either way you will get a K-1 issued.For the tax issue please refer to CPA...but, my experience is that the passive losses will only offset passive gains.

Just Breaking EvenWhile breaking even is better than a loss, it's generally not ideal.I would aim for properties that provide positive cash flow immediately to ensure you're making a profit after all expenses.

If so then folks could sell real estate, book profits based on the value of the Gold, but log a transaction that was technically a loss (tax write off) based on the face value of the legal tender.

My further step will be to go even lower and take a 10k or 20k loss that I might use for my tax return next year before the hard money debt becomes even more. 

There is loss opportunity costs.

Our first plan didn't work and we would have had to take a loss if we sold it.