In my particular situation, I could lose 58% of my income and I would still be able to service my total expenses.

It's one of those "least nice properties in a nice area" situations; I'd be looking at holding the property over the long term and there is ample new, high-quality construction occurring in the neighborhood, which is situated in the heart of the most desirable downtown area in my city.

From your post, it sounded like the SCDOR and your CPA are treating your situation as though you are selling the homes.

The title company I use for my RE sales business has started to send all but the last 2 numbers for the wire transfer and then will only release the last 2 numbers via telephone to help avoid this situation.

For my situation, in my market, my business partner and I do about 5-7 flips per year and target 20-25% profit margin, which we then split 50/50 between ourselves. 

Here is a quick run down on my current situation.

But it doesn't help me for my current situation.

I've recently purchased a 15 unit building that was originally built to be an assisted living facility.

@Rob Brown Your asset allocation should be determined by your personal financial situation.

I have done rent reductions for things like that in the past but it depends on the situation.