Do capital gains offset passive losses that the investor has, so someone really isn't paying a high capital gains tax as they thought? 

Push forward with your eviction and cut your losses. 

Talk to an accountant prior to doing the cost segregation study.You want to discuss whether it will be beneficial or not.In general real estate is considered passive which means that it can't be used to offset other forms of income such as wages, interest, dividends, capital gains, etc.However, there are some exceptions where the real estate loss can offset these types of income.best of luck.

We sold it at a substantial loss, but at least recouped some money.Analog:I did get a lawyer, but he finally decided it was too expensive to sue a company that does business in a different state.

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

The biggest win or loss you are going to have on your STR business will come at the purchase. 

Anyone can present a good vision.

This deduction is related to the loss on disposal of certain assets in your building such as replacing or removing existing components of the building.Cost segregation studies can be a very beneficial tool for real estate investors.

You now have a $1,000 loss and can use that in your taxes.

Looks like the money goes to the Escrow Company so no loss but the seller has to sign to release it. and if the seller thinks they were lied to by the wholesaler ( very common) they will not sign.. and the money is stuck too small to litigate over and if not resolved the title company will file an interpleader with the court and send the money there.