Regardless, the bottom line is that your profit would need to be recorded as income on your tax return after you show all related itemized deductions. 

Never use the security deposit to deduct fees or you won't have anything to cover damages.

In Colorado if a move in condition report was not filled out can land lords deduct charges from security deposit.

In addition, his principal paydown is about $1200/month, so his net impact to his net worth is $300/month before factoring in tax deductions or appreciation. 

Rental real estate provides great income tax deductions, for example, in the form of depreciation, which you cannot claim within 401k and IRA accounts.

However, do you really want a claim against your insurance policy for $700 in damages minus any applicable deductible? 

. ^_^ No it’s not, it’s asking about the losses that you didn’t get to deduct previous year because it was suspended under passive activity rule. 

You have up to 3 years after you leave to sell it to still be able to claim the capital gains deduction and not pay taxes since you would still qualify as having lived there for 2 out of the previous 5 years.If you did keep it, why would you think that you would need to refinance? 

For example, you make $2,400/yr in cash flow and sell it in 5 years but have to deduct $10k off the price for XYZ reason.

That extra $20,000 ($14,000 after taxes/deductions or $1,167 per month take-home) left me with a whopping additional $67 per month for having a professional job and bachelor’s degree in finance.