Excess business losses are capped for single individuals at $250,000 and for married individuals at $500,000, with any surplus being suspended and carried forward.

In both cases, the tenant should be educated on their responsibilities and held accountable.Even if the water source were a leaking pipe or roof, you should be able to identify the problem, dry it out, and remove the mold professionally within a few days and then the problem goes away.Simply accepting the tenant's claim - without verification - and allowing them to break the lease without penalty is a bad policy that will cost you much more in the long run.

.$25000 seems excessive for repairs.

Can John deduct excess losses, ie depreciation, against his w2 income from a salaried position?

You should only consider switching when your current software has a significant flaw or lacks features that force you to spend excessive time on workarounds.

A minimum of 480 sq. ft. of lot area is required per dwelling unit for the lot area in excess of 1,919 sq. ft.

I DO NOT pay myself the excess. 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

[Oh, and for those who just like owning their primary free and clear because they're scared to invest their excess income to actually increase their eventual wealth, just give your Lender extra "Principal-only" payments as often as deemed appropriate to the "velocity" you're trying to achieve.  

I got the whole house re-piped and  intend to cover the excess usage due to the leak.