I can say for a fact that they do not treat the property better than most other people.

These qualifications allow property owners to treat their rental income as non-passive, which opens up tax-saving opportunities such as deductions for business expenses, depreciation, and bonus depreciation.

Depending on your specific situation, it is possible that we could find a justification for treating it as a repair. 

Treat it as your income...tax free. 

I'd be delighted to treat you.

The advantage of this LOC is that it offers an integrated checking account/routing acct # so you can treat the loan as a "checking account," and it auto sweeps or calculates interest daily and closes out your position so that means any funds credited to your account can lower your daily interest cost.I have one that is fixed for 5 years interest only but its a commercial LOC that I use for acquisitions and it calculates simple interest which is nice when you want to make early payments or if you'd like to do those pay check parking strategies or rapid debt free strategies.Most lines of credit do not have escrowed tax and insurance so this means you will have to pay it on your own.When I do LOC's on rental's I just have the PM (property management) take over the responsibility of escrowing the property taxes and insurance so I dont have to remember when to pay them.Typically LOC's are full recourse but at a low enough LTV Im sure you can negotiate a non recourse LOC but that'd probably be in the commercial realm at a bank small enough where they'd be willing to negotiate, probably.

Any reduction in debt or cash received might be treated as "taxable boot," potentially resulting in tax liabilities.

Treat her exactly the same as you would any other tenant.

The loss is typically treated as a short-term capital loss, which can directly offset short-term capital gains, and up to $3,000 of any excess loss can offset other income.Consult a tax professional to ensure you're handling this correctly and maximizing your potential tax benefits.However, if you lose the money you pay to buy the debt, the deduction from the loss doesn't equate to tax savings dollar for dollar. 

Also, treat others how you would want/expect to be treated - that is my philosophy.