You need to send them a Change Order form that shows a deduct of their contract amount and scope down to zero or whatever was paid to them at that time for what was completed.

Since I have the property for less than a year I will need to pay 25% short term capital gains, although I'm told I can deduct loss of rental income each month I purchased the property (since I "changed my mind" regarding renting vs. selling the condo).

I tried to keep good records/receipts up until now but I can't help but feel I am either missing deductions, or other ways to minimize taxes owed.I picked up the book Real estate tax secrets of the rick: big-time tax advantages of buying, selling and owning real estate by Sanford Botkin.

Rented for a monthly NOI of $500 after deducting PITI + $250 just in case expenses.

For example, you won't be able to do conventional lending with your IRA, nor take advantage of the depreciation deduction.  

.$140/month * 12 months / $30,000 equity = 5.6% return on equity per year before depreciation, loan pay down, and an interest deduction.

BUT, having only one property thus far I'd suggest you pick up Every Landlord's Tax Deduction Guide by Nolo.  

If they do additional damage, then I will deduct it from the security deposit.

They link directly to the tenants checking account and deduct rent automatically on whatever date you agree upon with your tenant.

Topics include: income, deductions, depreciation (new laws for 2015) and credits.