Of course I have will have pay the 10% penalty and the proceeds are taxed as ordinary income, but I can take depreciation with properties to offset it.Hope this helps and wish you best of luck in whichever decision you decide on.

Our suburban Chicago community, on the other hand, has outgrown it's facility, we must use the patio area of the Fuddruckers Hamburger restaurant across the street from our office to accommodate the fix-and-flip study group.

Ex) Original build was estimated to be $500k, however during the build upgrades were selected such as windows, larger patio, upgraded floors, etc.Option A - Would you have the property reassessed after completion and use the new assessed value for cost basis? 

@Joe Wood - You can deduct expenses in any business form, even a sole prop without an entity, as long as its ordinary and necessary.  

I am fighting with a city right now over a patio roof.

For the sake of the majority of investors- I hope you're correct and it ends up being a no questions asked deduction for the ordinary rental owner with a few single family properties.

So, does that mean that rental income will be classified as ordinary income too (vs investment income which is taxed at a lower rate)?

An attorney licensed in this state who negotiates mortgage banking loans or mortgage loans in the ordinary course of business, unless the business of negotiating mortgage banking loans or mortgage loans constitutes substantially all of the attorney’s professional activity.

Typically within the three wealth buckets: Portfolio (stocks), Passive (passive real estate, private equity, etc), Ordinary (W2, commission, etc.) 

The Tenant can "want it back" until the cows come home but she is ultimately responsible for returning it in the same condition, minus ordinary wear-and-tear.I suspect you are letting your feelings get in the way instead of running it like a business.