These things happen but they don’t have to.Now we are displaced for over a year while we await the demo and reconstruction of our home.

The better neighborhoods are the one further along in the reconstruction process.

The other key is to record it on the same day ("contemporaneous log") as opposed to reconstruction at the time of an audit.

Management decisions that count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.This means that I have to work with property management teams to hand over some of the “decisions” for my rental property.I am working full-time with a W2 income, and I want to know how I can maximize tax incentives while I am transitioning to being a real estate professional which is defined as the following:Qualifications.You qualified as a real estate professional for the year if you met both of the following requirements.More than half of the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated.You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.Real property trades or businesses.A real property trade or business is a trade or business that does any of the following with real property.Develops or redevelops it.Constructs or reconstructs it.Acquires it.Converts it.Rents or leases it.Operates or manages it.Brokers it.Basically, I need a CPA who can work with me and understand my situation fully.

In connection with Building Construction, Reconstruction, Repair or Erection.

.), but recently had a major sewer drain line failure under some toilets that has resulted in some extensive abatement/repair/reconstruction expenses that we were not planning on.

Further:"Real property trades or businesses include property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business."

Forget it,this is not what you wanna cut your teeth on.It needs almost total reconstruction,an architect to redesign the interior to create proper bathrooms and open space,the works.just looking at it from a distance I would guess 150 grand or more in reconstruction costs.

too competitive and cheap, especially in charleston where half the city is in RE/construction.  

A real property trade or business is defined as ANY real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business.