As always, consult with your licensed tax professional for qualifying, tax implications and strategy.

The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

I invested as a sophisticated investor, although I have no professional accreditations.

My lease requires professional carpet cleaning, which would cost more than $500 for a home of that size.Yes, it's reasonable to reduce the cost because she was such a long-term tenant.

Take full advantage of available tax incentives by working closely with a tax professional.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Readers should seek professional advice.

@Victor Yang To use the rental losses to offset any active income (W2), you'd have meet Real Estate Professional status (which would be difficult to do with a W2 job because you'd have to work more on real estate than any other job to qualify) OR have an AGI of $150K or less.

You’ll come out stronger, and this tough experience will only sharpen your skills as a landlord.Cheers,Rene I completely understand your frustration—situations like these can be incredibly challenging, both financially and emotionally.

Here are a few do’s and don’ts that saved me time and headaches:✅ Do invest in professional photos.❌ Don’t ignore guest communication—automate it!