We reviewed some of the past closures that were impressive.After almost 2 years, we aggreed for an adjusted reduced guaranteed payout and even that schedule was not honored.

There are some general rules but there is also room for flexibility built into the tax code depending on your specific tax strategy.Is your duplex separately metered?

It depends on the zip code and the specific property.

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.

Be sure to check permit and code requirements.5.

It puts each expense in the appropriate IRS code and punches out year end summaries that I email to my tax team. 

You MAY be able to ensure nobody is living there and avoid the need to use a constable/sheriff by having the municipality's code enforcement office post a notice saying the place is "uninhabitable".

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

These are professionals with additional training and a stricter code of ethics.

Don’t skip a professional inspection of the property, as there could be hidden issues such as structural damage or code violations.