Personally, as a matter of practicality, since they are allowable expenses I THINK the only issue the irs could take is just that its reported wrong, and you'd just apply it the way they want.

I really would like to know if you have ever had to litigate the issue or know of a case, you're relying on for your understanding of how the law would be applied?

The issue is people struggle to look forward in real estate.

So there are two issues here. 

I’ve long term rentals till now but the issue is that the current Property Management company is deducting amount by saying there are repairs.

If any issues with China or the Panama Canal become worse their prices will skyrocket back to $5,000. 

Another issue is that out of state investors seldom bother to protest their taxes which is an essential part of the process each year...if you don't push back, that's on the investor.

Second issue is that “wholesaling” as the term is used now is NOT investing; at the low level operation it’s a JOB as an unlicensed real estate broker; at the high level it running a FULL BUSINESS operation.  

The code enforcement officer said he mentioned these issues to the sellers and the sellers' agent.

So legally, you can say 'no' to many of the issues that are brought up during an inspection.