@Abhi Patel - You can deduct up to $25,000 in passive losses (Rentals) against your ordinary income (W-2) and other active business income if your modified adjusted gross income (MAGI) is $100,000 or less.This deduction phases out $1 for every $2 of MAGI above $100,000 until $150,000 when it is completely phased out.

Rooftop patio, gym and activity centers are main amenities.

It seems easy to compare that property to an apartment but luxury apartments come with amenities (pools, gyms, patios, trash services, etc.) your property won't.

And withdrawals from your 401k are taxed at ordinary rates.I would think about converting to Roth now as taxes rates are extremely low.

From my research it sounds like people are split between thinking it is Ordinary Income vs.

First is that the tax benefits only apply to capital gains, you can receive any benefits on ordinary income.

But when a hurricane was heading toward the island, Vacasa proactively moved all my patio furniture inside.  

While still amazing profit-wise by ordinary standards, I also figured that by the time I got to them, I'd have bought my new sailboat and be doing other things with my life.

Skilled captains with years of experience, like seasoned pirates who know every ocean current, can navigate deals with cunning and confidence, often steering their earnings towards higher shores.Imagine them making complex calculations in their heads, spotting hidden potential in seemingly ordinary properties, and sealing successful deals with a firm handshake.

My re-sale profits are mostly ordinary income and not capital gains.