Hi Mathew, thanks for asking about in effect the tax treatment of non refundable option payments, rent credit etc!!

If you had the intent to hold for investment and were waiting for capital appreciation, then it would certainly qualify for 1031 Exchange treatment.

If so, then they qualify for tax-deferred exchange treatment under Section 1031.

Phil Z Fix and Flips do not qualify for 1031 Exchange treatment.

Rehabs/Flips do not qualify for 1031 Exchange treatment because you did not have the intent to hold for rental or investment, but rather had the intent to fix and flip (i.e. held for sale, not investment).

You must sell and buy "Qualified Use" property in order to qualify for 1031 Exchange Treatment.

Each strategy gets 2 short pages of treatment.

Ya........Military spending is 1/6 of spending, but there are large swaths of that budget that are NOT "military" in nature, including (of all things) research into treatments for autism, lawyers to provide guidance regarding 'equal opportunity employment' and I could go on, and on and on......

There is neighbor resistance to special needs, particularly when you are talking about violent behavior, sexual behavior, drug & alcohol treatment, or prison halfway houses.

The real benefit of the tax treatment of rental income is that you avoid some of the tax on the rental income.