Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

What Property limits and deductibles?  

The biggest thing you will miss out on is leverage/diversifacation plus mortgage interest deduction but as far as actual benefits outside of the above 1st time home buyer down payment assistance (many of the programs have fine print that often makes less of a good deal than just free money) no not really. 

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.

@Alagi Faye Your STR property in West Africa can qualify for U.S. tax benefits, including depreciation (over 40 years- but not bonus depreciation that comes with cost seg) and expense deductions.

You could deduct advertising fees. 

In a healthy Association, they've taken into account that this will need to be replaced, and have planned for it, essentially charging everyone who has lived there over the last 20 years a nominal amount to be put toward the new roof when it's needed.With an unhealthy Association, they try to keep HOA dues artificially low, and when a repair is needed, they levy a Special Assessment, which puts the financial responsibility on those who live there currently. 

All of the value would be considered long term capital gains and so I was trying to see if I could instead 1031 exchange the proceeds into an investment property which I’ll eventually move into and sell with the primary residence deduction.

Many vendors (for obvious reasons) either wouldn’t do that or didn’t do that so I couldn’t qualify deductions from my income.

We had a tenant who decided unilaterally to move out two weeks later than the contractual end date. Consequently, the house could not be made ready for the new tenants and after a big scramble, we managed to save the ...