But classifying your depreciation (either the leftover annual depreciation after taking bonus depreciation, or the regular amount of depreciation if you didn't take bonus depreciation) can be taken as an active deduction against your W2 income for as long as you materially participate in the property.Disclaimer: I'm not a tax professional so not financial advice. 

They classify staying in the property as getting personal benefit. 

@Dan Powers   You should post this in the REAL ESTATE CLASSIFIEDS section under Real Estate Events & Meetups.

THe website I am using is called KSL so my calling it Craigslist is inaccurate but it does tell me that classified websites have potential.

He has more information on you than anyone else would.Your tax rate will depend on how your accountant classifies the activities - Is it ordinary or capital gain?

I put a post on the Classifieds looking for wholesalers in my area as 99.9% of properties on the MLS are priced to high and the ones that are affordable have intense competition.

This can have a very beneficial impact as personal property typically has a much shorter useful life for depreciation purposes than real property.For example, if you are getting a cost segregation study performed on a commercial office building, there will most likely be assets that have been classified as part of the building but are able to be reclassified to real property and depreciation over a shorter useful life such as 5,7 or 15 years rather than 39 years.

@Robert Rose If you look in the classifieds you'll see 2 courses I just posted.

Bigger Pockets has a Classifieds secton, I believe you can post there. 

I'd like to discuss this with a syndication attorney but I thought I'd ask this forum first as I'm not sure how many syndication attorneys would honestly say we don't need their services and give steps needed to avoid being classified as a security.