In that case, using the cost segregation study this year might not be necessary because the extra depreciation would just increase your loss, which you might not be able to fully use right now.However, you have two options:Use the Cost Segregation Now: This would increase your loss this year, and you could carry forward the unused loss to offset future rental income.

For me fortunately I believe I have traditional security losses that equate to my capital gain, but I fear this DST industry has successfully pulled the wool over the eyes of retail investors who have a 1031 - 45 day count down and feel they have no other choice.The debate can start here.

A 1033 exchange is specifically for involuntary conversions and catastrophic loss situations like yours. 

The resulting first-year tax benefit was approximately $8,200 due to passive loss suspension rules.

The resulting first-year tax benefit was approximately $8,200 due to passive loss suspension rules.

Poor Tenant Screening = High Risk of Rent Loss & Property DamageGood property management starts with tenant screening.

@Javier Contreras save yourself a bunch of headaches and potential losses and connect with @Samuel Eddinger!

Lenders typically look at your full tax return (Form 1040) with Schedule C (for self-employment income) or Schedule E (for rental income) to verify income.To qualify for a home loan, banks generally require:At least two years of reported self-employment income.Tax returns, bank statements, and possibly profit & loss statements.A solid debt-to-income (DTI) ratio to ensure you can handle mortgage payments.If you’re newly self-employed and don’t have two years of tax returns, you may need to look into bank statement loans, which some lenders offer based on income deposits instead of tax returns.

Then I find out a week ago they sold the property at a loss, ALL my capital is gone, and Ken McElroy goes on his merry way making youtube videos about how much money he is making. 

I just found out the property is in a Zone A flood area, which means lower property values and a longer selling timeline.At this point, I’d rather take the $5K loss than deal with the potential headaches.