.: Tenants won't want to rent from you if they have to pay an extra $2,000 to refresh paint after living there for just one year.You should have a good clause that says you will charge Tenants for anything beyond "ordinary wear-and-tear" on the rental.

It’s just netting to zero.4)If you are eligible for active participation, then you might be able to use it against ordinary income.

But since rental activities are per se passive, not only might you need to all basis requirements (704(d), 465, 469) if a partnership for it to get to the 1040, but you are also going to need either enough income to absorb it to avoid passive limitations, or be lucky enough to benefit from the active participation of 469 up to 25k.Also if you dispose of it soon after you have ordinary recapture under 1245.

Normally all profit from fix and flipping is ordinary income and so is subject to self employment tax.  

@Tucker KincaidGoing through your profile, you mention a couple things that may make doing your own return a little bit more complex than the ordinary return.1) You live in Tennessee but own a property in North Carolina.This will require the filing of a non-resident tax return with NC.2) You mention getting into STR's.STR's have a lot of similarities from a tax perspective to LTR's.

Paint the wall that was damaged "beyond ordinary wear-and-tear" and charge the tenant for it.

Quote from @Cole Britting: Hey @Manuel Moreno Jr, congrats on the deal!

Nothing out of the ordinary, call calling motivated seller list.

Obviously at this time everything is out of ordinary so very difficult to predict.

The answer, like almost anything else tax-related, depends.Travel costs (in general) are deductible as long as they are what the IRS calls "ordinary and necessary" expenses.