My numbers may not be spot on, but assuming:Sale price of $469k (6% agent fees), basis of $264k, Total deprecation taken $24,600 (adjusted basis $239.4k).

I have had clients that did not know this house was vacant 4 months caught fire burnt to the ground .. first thing the adjuster does is interview the neighbors and ask when was the last time anyone was living there.. so same thing here with the freeze you need builders risk / vacant home rider  in these situations. 

The adjustment for all prior years is done on the current year return, hence the complexity. 

However, the agencies ask for numbers and actual landlord feedback in writing to show them the system needs adjustments.

I thought it would be as simple as adding up all of my losses  from Schedule 1 - Additional income and adjustments to income line 5 over the past few years. 

Why is a self-directed account so different that the financing adjusts the taxable amount?

yes they allow rent adjustments from year-to-year based on the avg rental pricing for the area, but keep in mind there will be a maximum. 

We spoke to real estate agent about it briefly and decided that we did not want to take on the responsibility of the designs given the uncertainty with the current septic/property.Jan 21 2024 -Adjustment in the description that the new Septic system was already being designed.

Stay focused on your goals, and don't hesitate to adjust your strategy based on what you learn along the way.

Their insights highlight the necessity for a careful approach to vapor barriers and insulation, emphasizing compatibility with the building's original design and moisture management needs.Here's the plan:Ceilings/Attic Floors: Elevate insulation to R-38 or above, incorporating vapor retarder paint or smart vapor retarders for optimal moisture management.Walls: Boost insulation to R-13 or more, utilizing smart vapor retarders or materials with adjustable permeability.Basements, Crawl Spaces: Increase insulation to R-19, targeting ground moisture and internal humidity control.Materials: Opt for eco-friendly, breathable insulation and vapor barrier materials that preserve the building's historic charm.This meticulous approach elevates the property's energy efficiency and moisture management, enhancing its value and ensuring a profitable return without compromising its architectural integrity.I'd like to hear your thoughts, experiences, or any advice you might have on integrating vapor barriers and insulation in renovating historic properties.