You can write off everything still, its actually better if flip takes more then a year as you can make it look like a long term capital gain, need a investor friendly CPA who isn't afraid to do what gets you the lowest tax payments. 

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.

We want to travel and invest and are considering converting this short term rental to a long term rental to avoid sales tax, paying utilities and general management of the property. 

In fact, the USTC has found in favor of the IRS when a taxpayer did not apply the law correctly (what everyone deems the loophole).

The tax payers of the world cannot pick up the tab for this waste of energy and so-called "innovation."

Depreciation and Expense Deductions: As an individual taxpayer, you can still claim depreciation and ordinary expenses (e.g., repairs, maintenance, insurance) associated with a rental property.

v=T8-85cZRI9oI think it's ironic that the so-called experts that are calling bubble on bitcoin are the same ones that purposely create bubbles to enrich themselves and leave taxpayers holding the bag.

Right now the LLC is the taxpayer for the property.   

For larger properties, some of our clients run another cost segregation study at the time of sale.2) Partial Dispositions - Taxpayers can carve out and dispose of components removed or demolished from a building.