Hey @Ujwal Kolli,When you do a cash-out refinance on one rental property to pay off the mortgage on another, the interest tracing rules generally allow the interest to be deductible if the loan proceeds are used for business purposes, like paying off another rental.

I bought quite a few SFRs in Madison MS that all qualified and I promptly got audited. and of course my CPA could easily prove I was full time and qualified for the deduction.

If the carpet is damaged beyond ordinary wear-and-tear, then you deduct from the deposit and charge anything remaining.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

I receive rents totaling $1817 per month, after property management fees of 8% are deducted.

You can deduct expenses like mortgage interest, property taxes, insurance, and repairs, as well as depreciation on the building (but not the land), which helps reduce your taxable rental income.If you refinance, any interest paid on the new loan would also be deductible.

(you do not pay the taxes you lose the house, and you do not pay the insurance the lender will put insurance on the property for you)  Assuming the properties are showing up on your tax returns the income/loss will be calculated from the returns using this form:  https://content.enactmi.com/documents/calculators/Form1038.C...The form will allow you to add back your paper loss of deprecation on your returns as well as your property tax, insurance and mortgage interest deduction as those last three are already taking into account into your payment as mentioned in the first paragraph.

You can average these or choose the most comparable sale to determine a reasonable land value.Using a lower land value increases the building’s depreciable basis, maximizing your depreciation deductions.

This allowance lets you deduct up to $25,000 in passive real estate losses to offset other income (like W-2 wages).

i.e. deductible for a roof replacement or replacing an HVAC unit or replacing a hot water heater?