The appraisal district shortly thereafter corrected the tax allotment “anomaly” between the two lots, but the investor never made a tax payment and eventually lost the lot to a tax foreclosure.  

Since heis a “Cash” taxpayer and not accrual.

The interest on the rental is an offset to rental income, and is by definition deducted from your taxes.A 4% interest rate on a primary is like a 4.88% after rate for a taxpayer in the 22% federal tax bracket, or higher if in a state with state income taxes. 

Each individual owner can have their own Deferred Sales Trust™, the assets of which can be managed to each taxpayer’s own individual risk tolerance and preferences.9) Net rental income.

I was unaware of the tax-paying requirement you mentioned for adverse possession.

As a part of the partnership with the state of Virginia, which included $750 million of Virginia taxpayer money for infrastructure improvements to support the Amazon HQ2, Virginia is offering Amazon $550 million in grants for hitting that hiring goals, and an additional $200 million for hiring 12,850 more employees from 2030-2034.

This is due to bonus depreciation which allows taxpayers to deduct 100% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

It is a lot of money, but taxpayers also pay a lot in taxes and there should be some money for these types of things. 

The system is what's really broken:1) S8 should have a time limit - get free housing to get your life in order and move on.2) S8 should have strong requirements for taking care of the home taxpayers are paying the rent for. --- We haven't seen a S8 inspection report in over a decade that required a tenant to fix damages they obviously caused.

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.