In our case, our lease specifies that if a tenant wants to break the lease early, they are required to pay three months’ rent as a penalty and forfeit their security deposit.This approach helps cover the costs of finding a new tenant and any potential loss of income while the property sits vacant.

I'd be pretty irritated over the loss of 6k, 4 months of stopped work and the corresponding holding costs.Do you invest in OH, or somewhere else?

If you operate the vacation rental as a short term rental, you will be able to take advantage of taking any losses you have on the property against your ordinary income.

It didn't cross my mind when I sold the above property at a loss I mentioned above.

Section 469(c)(7) provides an exception that allows qualifying taxpayers to treat rental real estate activities as nonpassive, enabling them to deduct losses against other types of income.

I have seen instances where a 1031 exchange was not required such as1) The overall gain from the sale of the investment property was very small or even negative2) The taxpayer had enough passive loss carryforwards to offset the gain.A 1031 exchange is a very powerful tool put it has to make sense before going forward.

🔟 Casualty Loss Deduction: Disaster losses might be deductible.📝 Pro Tip: Keep receipts & records to back up your claims.

This delays evictions and often results in significant financial losses for landlords.

These self employed 2nd mtg's are typically based on alternative method of caluclation like profit and loss statements if you're self employed or the last 12 months of bank statement deposits using a formula to derive an income from these deposits (like 50% of all annual rolling 12 calendar month deposits X 50% /12 months = monthly income).

We're at a loss on what to do here.