With rental real estate, you can usually deduct up to $25,000 in passive losses, like depreciation and expenses, if you actively participate in the rental activity.But here’s where income comes into play: if your modified adjusted gross income (MAGI) is $100,000 or less, you can take the full $25,000 deduction.

@Catherine Curtsinger To play a little devil’s advocate I have been house hacking for 30 years.

Their goals and upcoming upcoming purchases may come into play. 

Like with anywhere else: location, pricing and the overall house you intend to build will play a factor in your profits.

So, you're not "wrong" in thinking it's complicated.The tax code plays heavily into how certain transactions are categorized and there is some flexibility regarding what we can capitalize versus deduct.

Preference is cash-flow, but open to appreciation/equity plays as well. 

Each city’s approach can play a unique role, but zoning for higher density developments stands out as a powerful strategy, albeit a tough one to get passed.

It's a really high-energy dog and I don't think they take it out often enough, so they play indoors a lot.

Like playing loud music in the middle of the night if you upset her which goes through the walls.

Strategically positioned behind two other investment properties, it plays a central role in transforming the area into a thriving residential community.