.: "A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer."

.: "A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer."

@Marysue Connelly, The 1031 specialist you spoke to may have not had the entire picture.The regulations of 1031 require that the tax payer for the old property be the same as the tax payer for the new property. 

Replacing the vinyl will rarely qualify because I am sure it will be greater than 1) Lesser of 2% of your basis in the property or $10k  for a small taxpayer safe harbor. 2)  a $2500 to qualify for a de minimis safe harbor, if replacing would qualify, usually not being a structural component of a building.  

And even if it is  titled in a different entity it's probably a single member LLC and  I imagine it would still be you as the tax payer.

The  inability to show exclusive and continuous possession means judicial redemption rights could hang on longer than anticipated, void tax sales could be set aside longer than anticipated, and if it has been three years since the tax deed without exclusive and continuous possession for SOME period of time towards the end, then the taxpayer might be able to set aside the entire tax sale and pay the investor nothing at all. 

They must pay income tax as they earn or receive income during the year.Estimated taxes – If the amount of income tax withheld from a taxpayer’s salary or pension is not enough, or if the taxpayer receives income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, they may have to make estimated tax payments.Self-employment tax – This is a Social Security and Medicare tax.

It is the LLC who is the taxpayer for that property so it is the LLC that has to sell it and do the 1031 and purchase the new property. 

However standard deduction is a set limit for a single taxpayer or married filed jointly. 

Have not found anything else on this but it seems even if it only applies to taxpayers who materially participate in their rental activity this is a pretty significant change.