Hi Rafael,Because you did not have any taxable income to report, the expenses would be carried forward to next year.  

You can also compare how the actual income/expenses compared to your budget/estimates.The financials can also be used by your accountant to make tax filing easier.Financials can also be required/requested if you are requesting funding from a bank/investors.unrealized gain/(loss) on an investment is not a taxable event.I don't see an issue in recording appreciation on a real estate.Your accountant shouldn't complain, it is all about the reasons that you want to have your books.

You have to do the numbers to make sure that the after tax return is enough to make the investment worthwhile.Whether the profits from the "flip" are unrelated business taxable income (regardless of debt financing) is a little unclear under the law.

.-  You can also buy performing notes in an IRA, since the income would normally be taxable, keeping it in a tax deferred IRA is a nice plus.

@Steven Hamilton II my issue doesn't relate to taxable income and what's subject to tax (or deduction). 

The REQUIREMENTS of the safe harbor election for small taxpayers are:*Average annual gross receipts of $10 million or less; and*Owns or leases building property with an unadjusted basis of less than $1 million or less; and*The total amount paid during the taxable year for repairs, maintenance, improvements, or similar activities performed on such building property doesn't exceed the lesser of:-*Two percent of the unadjusted basis of the eligible building property; or-*$10,000 (for questions about how to calculate the unadjusted basis, refer to "Figuring the Unadjusted Basis of Your Property" in Publication 946You make the election to use the safe harbor for each taxable year in which qualifying amounts are incurred.

Some rambling reasons (so you need to check into some of them):1. a ROTH IRA grows tax free. 2. you can do a self direct IRA for your properties3. yes, you have to wait until 59 1/2, but pretty sure that is for the gains...your contributions can come out sooner and tax free (cause it was put in with after tax dollars).4. rental income is taxable5. when you get old and retire from RE and have your PM do the work, you can play the stocks.6. in retirement, you should be funding your retirement with taxable and non-taxable income.

This deduction lowers your taxable income, so the actual value of the deduction is based on your tax rate.

If a business goes away - i.e. does not generate any taxable income for a particular tax year, for example - then the Solo 401(k) has no sponsor.  

For a business owner with $100,000 taxable annual income, the net tax savings for using an S Corporation instead of an LLC in taxes paid every year can be as high as $7,500.Holding PropertiesWhen holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.