Its all about deductions for business expenses.

If you mean that you first filed your tax return showing high income to qualify for a loan, and then you filed an amended tax return to claim more deductions and reduce your taxes - this is a very bad move, potentially classified as mortgage fraud and/or tax fraud. 

You probably can include the mileage deduction as the part of unreimbursed expenses, but to claim the bonus depreciation, the partnership needs to own the asset. 

If you have depreciation and interest deductions that can’t be used (say your before tax income is only $200, and your int/dep deductions are $5,000), are those unused deductions passive activity losses that are carried forward even though you had some positive income?

After paying the $55 deductible, their contractor refused to make the repair.

Under typical circumstances, unless there is actual damage to the walls, you would not deduct for paint even if very dirty.

I get to deduct my interest paid to the seller and the seller has to declare the income.

@Song Choe if you were not sent an itemized statement of deductions within 45 days, they broke the law and you can take them to court.

My question is- if I only assign the contract and never take legal possession of the property, can I deduct my renovation cost from my profits for tax purposes? 

No small claims judgment creditor in their right mind is going to levy a property with a first mortgage in order to satisfy a small debt.