I also do not believe that these extra ordinary actions by the Fed won't have an impact, I just don't think it will come in the form of inflation.  

@Arshad HussainIt sounds like your CPA is treating the sales as capital gains and not ordinary income subject to self employment tax.

Another odd situation you could create if you could self deal - sell an asset to yourself for capital gain at capital gain rates, then turn around and take bonus depreciation on your new asset at ordinary rates - obviously this would be drowned upon. 

., ordinary tax or capital gains? 

So also if it has not been a problem before or yet, something for white noise for the tenant so they are not bothered by the other tenants may also be a good solution, assuming the other tenants also are not making noise out the ordinary. 

@Nicholas Z. well no tax sheltering as the interest income is ordinary income.

Passive gains could be coming from other passive investments especially coming from sale of other assets (which are overripe - you should have sold earlier so you don't have such a large capital gain and depreciation recapture in the first place).In summary Passive Losses cannot offset Ordinary Income (401k withdrawals) unless you are implementing REP status

My only big recommendation is find somebody that you can FULLY trust to be your 'boots on the ground' in Maui should anything out of the ordinary pop up. 

Sold for $150k: $50k of Sec 1231 gain, $80k of Unrecaptured Sec 1250 gainSold for $80k: $60k of Unrecaptured 1250 gainSold for $10k: $10k of Sec 1231 loss (which would be an ordinary loss for tax purposes, much more advantageous than a capital loss)"Would you actually lose some of the original money used to buy the property if the market didn't experience and significant appreciation over the 27.5 (life of depreciation) years and sold for $100K?"

@Ray SlackBenefit of REPS: deducting rental losses against ordinary income - correctDrawback of REPS: self-employment tax - incorrect, no SE tax on rentals, no matter whatBeing v "not being" REPS - incorrect, it's not a choice, you have to qualify to be eligible to claim itNo loss without mortgages - not necessarily, you may be able to generate large losses via cost segregation and accelerated depreciation