If everything is done correctly, you will have no taxable income.

Federal bankruptcy also removes the person from the list. 

I have called 20 banks and no one does a 1st lien on investment properties except 1 stated they would if owner occupied.During the research I read a website, which stated that 1st lien HELOCS on non-occupied are illegal and not allowed by Federal Law.Anyone know if this is true?

I don't think it really matters what you record in QB if you need this for taxable income purposes, your accountant is going to make whatever adjustments they need to make anyway.The only depreciation tracker I use is the fixed asset schedule my accountant provides with my tax return.

because she declares income while being overseas, she can exclude the first 120k from federal taxes.  

Here’s a quick rundown on how things could work with taxes:1.Depreciation: You can write off depreciation on the units you rent out, which lowers your taxable income.

Any reduction in debt or cash received might be treated as "taxable boot," potentially resulting in tax liabilities.

The 1K a month (12K annual) will be reinvested into the property to minimize taxable gains in total portfolio and increase the value of the property.

Monetary inflation:The Federal Reserve (Fed) can increase the money supply by changing the target fed funds rate, buying Treasury securities or MBS (Mtg backed securities) to lower rates. increasing the money supply, which banks can then lend to consumers and businesses.Debt monetization.

These deductions were crucial in offsetting the property owner's taxable income, effectively reducing their tax liability.