The cost segregation study generated $80k in passive losses, meaning a portion of that would be recaptured as ordinary income (at a 25% federal rate).

It might also be worth looking into any federal or state disaster relief programs that could provide assistance, especially if the storms have been declared federal disasters.Hang in there, and I hope you find a solution soon!

I realize that, if true,  this is governed by state law rather than federal statutes, and therefore there will be fifty different answers. 

Also, if your multi-member LLC filed as a partnership in previous years, you may need to file a final partnership return.It’s always a good idea to consult a tax professional or attorney to make sure you're following the correct steps for both federal and state requirements.

If your second home is located in a federally declared disaster area, you may be eligible for temporary mortgage relief options such as:- **Forbearance**: A temporary suspension of mortgage payments for up to 12 months.- **No Late Fees or Penalties**: During the forbearance period, you won't be charged late fees or have delinquencies reported to credit bureaus.- **Repayment Options**: After the forbearance period, you won’t be required to repay all missed payments at once.

You could consider house hacking to reduce out of pocket expenses.It’s definitely an appreciation play not a cash flow play but with the federal government here appreciation is consistent - you won’t get super high appreciation like some places but also don’t get high depreciation as well.

This implies you immediate return is the combined state and federal tax rates.  

Assuming you are in the 22% - 24% federal tax bracket for most of your income, your tax would be about $76,000(disregarding standard/itemized deducitons and other income).If you can somehow show rental losses = $300,000, you would get a refund of her federal taxes and potentially state taxes also.

Many syndications provide tax benefits such as depreciation, which can offset income, and some offer favorable capital gains tax treatment when you sell.Municipal bonds are another tax-efficient way to diversify, as the interest earned is generally tax-free at the federal level, and sometimes state level too, depending on where you live.

Quote from @John Federic: I ran some numbers for you using the Cashflow Analyzer Pro from AssetAFC.com (see the attached picture).From my perspective, this deal still looks acceptable, even though it won’t cash flow in the first year, assuming a 5% vacancy and 5% for repairs.