While there is some inherent "sale" from one or two that have and develop the idea it is treated different.

I send him all the details about what I spend and let him sort out exactly how things get treated.

Don't forget that you will be able to deduct the remainder of the basis at the time of disposal; however, you will treat any payments you receive for the items as the sale price.For example if your window is replaced at year 15 you will take the rest of the depreciation as a deduction and you will begin depreciating the new window.

i've heard of deals where you put, ie, $5000 down towards the future purchase. if you don't buy, landlord keeps the money.Now if I were the renter, & lost that much coin, cuz I didn't like the place or (more likely) didn't qualify for a loan, I'd be pissed & trash the place.Plus, as a landlord, I wouldn't want to treat people that way.

First, I'd discuss with your broker...But, that said, what's generally customary is that you disclose that you're licensed, and you treat the buyer as an unrepresented customer (not a client).

Do you treat it as investment expenses required to "cash out" the investor?

A multi-member LLC is treated as a partnership.

you're correct Dina Harleth ..in my multifamilies, i always paid for exterminating service a few times a year..single families i treat differently..i pay for a spray before they move in, and then once a year after that..if they have any problems, it's up to them after that...here's the risk though...even if the tenants are to blame, and technically 'responsible', what happens when they get pissed and move?

:Typically I have 1 rehab going at a time and I only like to hold them until the IRS won't tax me for income.If your intention is to rehab and resell, and if you're not renting them out for any period of time, the IRS is going to treat the property as inventory and you'll be on the hook for ordinary income taxes at your marginal rate.

You have no idea how your tenant will treat them.