But since rental activities are per se passive, not only might you need to all basis requirements (704(d), 465, 469) if a partnership for it to get to the 1040, but you are also going to need either enough income to absorb it to avoid passive limitations, or be lucky enough to benefit from the active participation of 469 up to 25k.Also if you dispose of it soon after you have ordinary recapture under 1245.

Etc...Know your intended most likely customers wants and dreams---and fulfill them.Some say the bulk of new renters will come from 2 or 3 mile radius of the place, and will compare you to your close in competition very carefully.So make sure you know your competition very well.On this property, about 20% of these units will have a chair outside the front door, despite having a patio.

Normally all profit from fix and flipping is ordinary income and so is subject to self employment tax.  

@Tucker KincaidGoing through your profile, you mention a couple things that may make doing your own return a little bit more complex than the ordinary return.1) You live in Tennessee but own a property in North Carolina.This will require the filing of a non-resident tax return with NC.2) You mention getting into STR's.STR's have a lot of similarities from a tax perspective to LTR's.

Paint the wall that was damaged "beyond ordinary wear-and-tear" and charge the tenant for it.

If it's inside the line, it appears that they ran their concrete patio all the way to the wall.

Our street just got hit pretty badly with the tornado and in the storm, she lost a patio, the roof over one of her additions, and garage door.

Nothing out of the ordinary, call calling motivated seller list.

In my bid that was accepted, I included in the conditions that I buy the property as is and that everything will be included with the purchase; including appliances, beds, sofa, tv, jacuzzi, outdoor patio, etc.

Obviously at this time everything is out of ordinary so very difficult to predict.