We paid $232,447.36 out to 36+ different trades & vendors for this home.This $232K creates jobs and promotes growth because it is spent and recycled in the economy, creating a ripple effect.Congratulations to the Greatleaf Homes Team for another new construction home closing today!

So far we've spent $1850 on two different exterminators combined but at least the house can begin to get worked on.I am used to working at a faster pace and hiring contractors to get things done.

Most of them I did the marketing myself and some years I spent more in marketing than some people make from their day job for a year… 

Quote from @Carlos Lopes: Gross income doesn't matter.This is the number most people post, and it's 92.7% useless.What you need is NET income, meaning the money left over after all expenses, and that should include a dollar amount for your personal time spent operating the business. 

So you spent all day calling banks.  

Invest that $10-20k you would have spent on a guru course and LLC creation BS into fixing the old rotten deck, keeping the sidewalk clear of snow, etc.. 

I'm dealing with a 70-year-old owner who has spent decades spending every bit of her monthly cashflow.

Real estate, by default, is passive and the primary way to avoid the passive loss rules is to qualify as a real estate professional.Full-time employees and non-real estate business owners cannot qualify as a real estate professional (aka REPS status) because one of the tests is to spend more time in real estate than anything else (and it’s unlikely that you can convince the IRS or Tax Court that you spent more time in RE than your day job).

Assuming you don’t meet the 500 hour test, you will likely need to document the time of others spent working on your property.In addition, you need to have guests at your property as well.Until you are 100% sure you can utilize the short term rental loophole, I’d wait to do the cost segregation study.

Quote from @Delbert Standifer: @J Kilroy greetings I just spent 200k on my ADU.