In subsequent years, only new assets or depreciable improvements to existing assets are reported on a new Form 4562After you finish Form 8825, follow the directions on line 21 to transfer your net rental income (loss) to Form 1065.  

Right now this isnt about me...this was 26 years ago and all I could see was my new equestrian center enterprise. 

Also note that overlays exist, to wit note that the Fannie Mae forms don't even include anything about a two year average, and specifically mention only "12 months" AND "borrower's most recent year [not yearS] of federal income tax returns" AND there is even a section for "property acquired during or subsequent to the most recent fax filing year," meaning Fannie Mae will actually go for counting rent BEFORE it's even on tax returns!

.; whether we’ll go over the cliff, whether there will be a subsequent recession, or its strength.

Given our experience we have chosen to leverage this experience and focus on Philadelphia investments, I am familiar with the areas targeted as I had lived in Philly for a period of time for school, and the cost of entry is within our tolerance for risk.Our long-view is to pivot to Rehab/Hold, and New Construction, strategies…our preference are Rehab/Hold properties within close proximity to existing vacant lots where we can subsequently add new inventory, contiguous lots preferred.

Linda, yes, the amount of money made relative to other income, the time devoted to the activity, the frequency of dealings and any entity exclusively dealing in notes can all determine if you are investing or if it is a business enterprise.

The challenge in the space if you either pay for a company’s excessive marketing budget or deal with some seriously awful interfaces that are common in the legacy enterprise software space because traditional short term rental managers were large firms that required managing hundreds of rentals at a time and could pay a full-time person to just sit there and learn the software. 

Examples I've heard: appliances taken from the property because a buyer stopped by and told the seller they were buying new ones eventually (appliances were across the state before the buyer realized this), sellers staying beyond their delayed occupancy window because the buyer told them they weren't moving in immediately (liability issue), buyer stopped by the house before submitting an offer and talked to the seller, subsequently giving away their top dollar and negotiating power. 

The sale of your existing property and subsequent 1031 Exchange into land with a corresponding build-out of a multi-family property is referred to as an Improvement 1031 Exchange or a Build-To-Suit or Construction 1031 Exchange. 

If I can ever be of help let me know.DebbieTridea Enterprise Inc.