Without a permit, the rental income might not need to be reported, but this approach risks legal issues, loss of tax benefits, and complications during audits or resale.

The conversation, as well as this decision, left me wondering how many insureds are denied policy coverage and cannot afford to bring a suit against the insurer and are unable to recover their loss.

If you want 100% of your investments in public equity, that is fine and you will reap those rewards or suffer those losses.  

I wouldn't worry too much about it, if you have a competent CPA or bookkeeper they should be able to review your books and within minutes have a strong grasp on who gets a 1099 (spoiler alert, not every contractor gets one, I'll be annoyed if I get one since I'm structured as an S corporation) and the amounts to report.1099 filings are usually a loss leader for us, so if you're working with a professional make sure you take advantage of them filing everything for you.

Which is why the "it works" forces point to it working and the "its bunk" forces can show that it is not magic, it is just paying more each month.It "works" because people don't realize they are actually causing a loss aversion reaction in themselves.   

I am not sure if it was just my market or more on their end but at the end it was a pretty big loss for us, so we cut it. 

Hi Jeff,Sorry for your loss. 

Realistically, many properties that go to auction may be in such bad shape that they don't justify the high bidding amounts, leading to losses as I mention above. 

If you are in this business long enough you will undoubtedly arrive at situations where taking the small loss even if not fair or warranted based on the circumstances is best if it keeps everything moving and avoids more costly delays, liability and inconveniences.In this case, if you withhold the $2K, you still have to find someone to complete the work to your satisfaction.

It sounds like this may be a loss but I am sure you have learnt from it.