Most phone numbers you get are incorrect, most people you talk to are going to be wrong numbers.

Everyone seems to think it's easy - 'just do it yourself'....A DIY'er is not going to prep correctly, very little sanding or caulk if any and done incorrectly.

Therefore, I am 100% passive, not a resident there either.I was asked by my property manager to apply for a business license, and business license department seems to incorrectly told me that I do need to apply for a business license.

Unfortunately this well-intentioned post has multiple incorrect statements. 

maybe a claim that the foreclosure was done incorrectly? 

If I am reading this correctly, you do not even have a deal or know which market you are possibly going to work in correct?

You would be filing an incorrect tax return by doing that.However, based on the timeline, it sounds like the dumpster rental and tool expenses occurred during the rehab and, therefore, before the in-service date.You may want to consider onboarding a CPA for your 2019 tax prep to ensure the reporting of this activity is done correctly.

Does anyone know what you have to do on a tax return if the assets were incorrectly entered for a rental unit that actually belongs on another rental unit? 

There are dozens of properties/resorts along the Grand Strand and they all have their own guidelines and quirks. 

Every time I've seen a failed or failing PMc, I also not a total neglect or ignorance to at least 1 of these functions, and something to a incorrect thought that they could run a PMc just doing/focusing on 1/2 of the above.