The IRS defines a repair as something that keeps your property in good working condition without significantly adding value or extending its life.

It'll still be mediocre wine in Fredericksburg and brown ocean water in Galveston, but there's a massive increase in the pool of people that can hop in the car and go for a weekend. 

Just the IRS tax rules.

3) Internal vs External (In-house service teams vs Outsourcing: AM, PM, IR, Back office, Operations)4) Does the Sponsor prefer a single market?

Finally, if the IRS tells you this scheme is invalid, you could be facing massive back taxes and penalties.

The IRS rules  say you’d need to spend more than 50% of your total working hours in real estate and hit at least 750 hours a year doing real estate stuff to qualify.

Based on those answers we hop on a call,If they are not accredited investors want to buy 1 million type retail condo I don't have time for that.  

@Jennifer TaylorYou can create a new LLC, a new IRS Employer Identification Number and open a new bank account just for the cottage.

There are some key limitations that are important:Passive losses can only offset passive income.Up to $25,000 in passive rental losses may be deducted against non-passive income if the investor actively participates and their modified adjusted gross income is below $100,000.Unused passive losses are carried forward to future tax years.Here’s an IRS article that further discusses the rules: https://www.irs.gov/publications/p9251031 ExchangesThis strategy allows investors to defer capital gains tax when they sell a property if they invest the sale proceeds into a “like-kind” property.

If you wait two years and have only used it for limited personal use then the IRS guarantees your investment intent under Rev Proc 2008-16.