If your income is above $150,000 and you are not eligible to claim real estate professional status, your rental losses become suspended into a future year.The suspended losses can be utilized in one of a couple ways1) You dispose of the property2) You generate passive income from this property or another property

Apart from giving the guests free equipment rentals.

Real estate meetups or online forums can be gold mines for this kind of info.Detailed Inspection: Consider hiring a professional inspector with experience in renovations to give you a detailed rundown of what needs to be done.

My downfall is that I didn't check on his bond status and verify his contractor license with City of Cleveland.

But, he has the right information on the tools to use, the expectations, tips & tricks, how to deal with AirBNB & VRBO and dealing with guests, is focused on the experience of the guest, on great ratings and he understands the process.

When it comes time to take the boards down and market the property, we've found that a LOUD alarm system and several cameras around the property can help deter unwanted guests.

Reporting (how do they report the status of the property to you)4.

So you will have to weigh the importance of maintaining legal status and potential savings you may get out of a LLC.

Congrats on the superhost status and making the most of that ADU behind your home!

In this case, the loss limitation is $25k per year AND your $25k loss threshold for the year begins to phase out at $100k in income and are completely phase out at $150k.If you have real estate professional status and are materially participating in long-term rental then the $25k loss threshold is removed (there is still a business loss limitation that you need to be aware that f but it is much higher then $25k) Would recommend finding CPA that understands real estate and REPS.