Property taxes, Insurance, Utilities, Mortgage payments, sometimes you may also pay a vendor directly, etcYou should be giving to your CPA the form 1099, Year to date PM Statement, form 1098 along with expenses that you paid for directly outside of the PM Company.Best of luck

The 50% rule states that approximately 50% of EGI will typically be consumed by operating expenses.While the 50% rule provides a quick estimate, actual expenses can vary widely depending on the property type, location, age, condition, tenant mix, and market conditions.Here's an example: if a property generates $200,000 in EGI per year, the 50% rule suggests $100,000 would go towards operating expenses like taxes, insurance, utilities, and property management.

Anyone have any knowledge on how to utilize their services with regards to this? 

A lot of the fees will include all of your utilities including electric, internet, water & sewer etc..

Have you done any detailed research on land availability near Sedona, regulatory issues, builders for the type of property you are contemplating, conservative revenue forecasts based on actual comps, cost of a support network (cleaners, maintenance, etc), cost of utilities?

@Carl Stenberg I can understand why management LLC's are utilized if there is an ancillary business that can operate on its own, but most on BP form management companies for asset protection despite adding no true benefits.

If the basement apartment has separate utility meters, you can deduct the actual costs.

It provides much needed “liquidity” in the market place; sets a baseline for “quick sale” pricing; and provides an out for people who can’t utilize broker/MLS, or who need a fast close, as is.  

HI Kev, we helped a lot of luxury STR investors this year utilize the accelerated deprecation tax incentive, I would actually suggest checking out the bigger pockets featured tax preparer section and sine it's likely a considerable reduction definitely not try and do it yourself..the investment in high quality reliable tax advice is essential to any investor tool kit. 

**Furnishing and Utilities**: My property is fully furnished, and I plan to include utilities.