Example: the intention of Passive Activity Limitation (PAL) rules is to prevent high-income earners from reducing their taxes by merely investing money into real estate.

I'm considering purchasing an invesnment property with a small ADU (1/1) in Georgia. I've never owned an ADU and I'm concerned about how it'll influence the primary which I also plan to list and rent.  It has separate...

If you have people with land and cash they want to put into service and invest help them do it.You also need to value the work at market value like you would any other project so you get paid to do the work.

Investment Info:Single-family residence buy & hold investment.

If you were to add a full bath room that would be a better investment.  

- Properly document your rental income on a schedule E and report it to the IRS.Connect with an Investment Friendly Lender- Not all lenders are equal.

We are stable long-term tenants and would prove to be a good investment choice.

I study a given market's supply, rental rates, comp properties, etc. for a few months to truly understand the MTR market before I choose to invest there. 

There are always options, and it’s just a matter of finding the right fit for your investment goals.Best,Drago

Under 1031, however, you must use your tax-deferred gains from the sale of the rental to purchase another investment property (or more if you'll be making a killing).