BUT if you do you will pay tax on the difference.You've been told or you've researched and think that you will not pay tax on your original basis and that is correct. 

In this case, if you have a documented list of damages that the previous tenants have done, then this is fair grounds for you to deduct it from their security deposit. 

I stumbled on some information about short term rental tax benefits as it pertains to lowering W-2 Income. 

_r=0&abt=0002&abg=1Here’s my synopsis: We are all involved in real estate because we know how to, or we are trying to learn how to, generate a secure and attractive rate of return on our money.I regularly double or triple my money or more buying and selling vacant land.

The general investment profile of recent investors are second home or vacation home buyers, typically from out of State or area, and looking to take advantage of the diminishing benefit of the 'STR Loophole' of accelerated depreciation to offset high W-2 wage taxes. 

I like Tahoe Reno, NV market because of the appreciation growth, low taxes, landlord friendly, and constricted supply. 

Where are you finding most of your tenants, and how much time/effort is required to secure a tenant?

At the same time, non-necessary expenses such as entertainment and grooming services are 6% cheaper in Jackson, TN.With the cost of living in Jackson, TN being lower than both the state and national averages, along with housing prices significantly below the U.S average and low property taxes, it's no wonder that many see it as a great spot to invest in Real Estate.

**Tax and Term-Free Loans**Are you leveraging the advantage of tax-free loans against your policy’s cash value, with the added benefit of no mandatory repayment terms?

It can be used as leverage for other ventures, including room rentals or as security for further loans.