You can even bump up your limits for short money and going with a $2500 deductible will save you money. 

NOW you have to deduct the cost of repair, it's the tenant fault that the pipes froze, I take it, not yours. so NO there is NO attorney case, the tenant has feed the attorney a bunch of BS in order for him to take the case.Sorry to have this so long, trying to explain everything here in steps.Tim [email protected] 260-433-2062

While I’m all for paying as little taxes as possible I pay my fair share and need my deductions.  

If you sell direct without a realtor you could save the 6% commission  (close to 20k)Rough number might look like this:Sale price 350kDown Payment 10kOwner finance 60kBank Note for 280k  at 4% 360 months Pmt = $1,336.76  (Less then rent and they will get the deductions for interest but have to pay taxes/insurance.Your Note:60k at 8%, 360 Am  Pmt = $440.26 (the 8% gives then=m some incentive to refinance)Your return when factoring in the 20k you save on commission is 12.33%You can then sell the net 60 months of your second to an investor looking for an 8% yield and get $19,850 cash out.Just a few ideas, good luck.

Once you convert this home to a rental, you will no longer be able to take the deduction on Schedule A.

Now deduct your mortgages at 60% to be conservative.

Now, there is a possibility that you can qualify for the real estate professional designation, and if so, you can currently deduct against your income your suspended passive losses and current passive losses without limit.

And the nature of real estate and all of its advantages (tax deductions, principal pay down, appreciation, time value of future payments, etc.) in the long run can turn just a good deal into a phenomenal one.The area has seen some awesome appreciation and rents are rising so I'm very glad I did it even at asking.  

In theory, probably $0 -- if that's the only money I make this year, my marginal tax rate on that $10K is 10%, but after standard deduction and other credits, I'm probably not going to owe anything.Now, let's say I buy that exact same property on December 30, sell it on December 31 and make the same $10K profit. 

Along with having interst payments that are tax deductible.