Then, the profit is taxed as ordinary business profit.

I think the backyard is nice as is but we plan to make it really top notch in time with a large patio and fire pit. 

Same thing - minimal out of ordinary extra stuff tacked on.    

Ask any ordinary Joe off the street to define primary residence and they will do it without hesitation.

Ordinary painters and good ones that at work on wood windows are of an entirely different standard. 

BP Community,247 pages of final IRC Sec 199A regulations, 39 pages of new proposed IRC Sec 199A regulations, a new Revenue Procedure related to W-2 wage calculation for 199A purposes, and a proposed Revenue Procedure putting forth a new safe harbor procedure for a rental real estate trade or business determination were released today, a Friday, between 3:30 and 4:51 pm EST causing quite a commotion on what would normally be an ordinary, pre-busy season Friday for most tax accountants. 

@Daniel Klein, I'll bet your lawyers steered you to IRS publication 544:If you report the sale of property under the installment method, any depreciation recapture under section 1245 or 1250 is taxable as ordinary income in the year of sale.

It will be taxed at ordinary rates for everyone.  

The IRS defines a valid business expenses as that which is "Ordinary and Necessary" to produce the income. 

On second thought, I guess that if you were deducting losses against ordinary income that would be an advantage -- IF the losses were only the result the RE depreciation and therefore only a loss on paper (since in reality, properties don't become worthless after 27.5 years - or whatever the depreciation period is - in fact they appreciate).