It's perfectly legal and it's actually your job to discriminate against anyone else you don't want to rent to, which normally includes people who don't appear able to pay the rent or get along with their neighbors.But, there is no law against you saying you only want a cetain type of tenant, as long as it doesn't exclude someone on the protected class list.

The list of excluded items are so extensive that judgement are very rarely collected. 

They EXCLUDED all Section 8 payments (logic being those are always paid on time anyhow, so they were excluded). 100% of my landlord friends (and me) have 100% collections here in Northern Colorado.

If not excluded, then it’s generally covered.  

-Business pays income tax on whatever is left after that, which excludes the $80K.Does this makes sense? 

Therefore supply will be in a real odd space for a while excluding a few outlier areas or states.

Good morning,I'm selling a rental property which is excluded from capital gains tax under the primary residence exemption.

Notably, the landlord is able to exclude the cancelled debt from income due to insolvency at the time of foreclosure. checkout this IRS publication to learn more: https://www.irs.gov/pub/irs-wd/1415002.pdf

I specifically excluded *bonus* from that prior post for that very reason of ineligibility, however, if the cost seg carves out 20% of the basis as 5-year, 20% as 7-yr, 20% as 15-year and the remainder as 39 year (assuming commercial), that’d still front one heck of a depreciation deduction using MACRS 200% DDB.Will still be some net gain, but that would dramatically dramatically reduce the cash he’d have to fork out to uncle sam… PLUS … he’d have new depreciation again!

You should know the rules inside out or be working with the professionals that know it.Incorrect moves can result in not only a taxable event to you but to your investors.Based on your most recent response, i do not think you have a good understanding of1) requirements of the QOF(You may need to substantially improve a property)2) How long you need to hold a property before it can be sold to exclude the gain3) Inside basis vs outside basisBest of luck