When you replace it, you deduct this $8k.Tax professionals who know the fine details of these issues are not cheap.

Hi I just went in to contract on my first fix & flip in Scranton Pennsylvania, and I am looking for straragies how to avoid paying big taxes for the capital gains, (beside of deducting of the expances).I heard that if I am buying a property through an LLC and then I am selling the LLC not only the house that could help, but I am not sure how to do it or it's really working, could someone with  experience help?  

@Karin Levi - Good question!

Or somehow deducting from deposits the constant AC repair costs?

She did pay for some of the damage and insurance covered some as well less the deductible which the tenant paid.

Since you're a cash basis taxpayer, I think the rule is that you can deduct the full amount.

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Rental income, after allowable deductions, is taxable as ordinary income.Business Licenses and Fees: In BBL, you'll need a valid business license to operate an STR.

@Kristen Dolotina As a landlord, you can deduct expenses like mortgage interest, HOA fees, repairs and maintenance, insurance, and travel related to managing the property.

Deduct all sales and income tax costs.  2.