The judge said “I’m very sorry for your loss ma’am, but the law doesn’t give me the right to transfer your problems to your landlord. “ she was out.

I realize they are selling properties and not guaranteeing income but I was more or less sold the promise of leased properties.Yes, we all know they sell at a profit and I have no way of knowing their profit and loss figures.

I've been using freetaxusa and turbotax and neither software has the option on t he Schedule to file it in a way that enacts the STR Loophole and allows the loss to be offset against my W2 income. 

That is a major source of casualty losses.

Effective Gross Income is the total potential rental income minus vacancy and credit loss.

Either I make a loss of $5000 deposit or pay extra $6300 to keep the same cashflow numbers in proforma the sales man showed me.I'll update my further experience here.

Or do we just cut our losses and keep her deposit?

My mortgage is $4500 but going rent for the area is $4,095 and not in need of loss of profit for tax purposes and needing more equity to make the investment worth it. 

A month later, a family friend referred me to someone looking to sell after the loss of a loved one.

When you write up your profit and loss statement, how do you break down the mortgage?