My CPA, who signs my returns but really has little risk here, will usually present me with my options, advice on the potential risks, and the possible consequences.I’m curious, since H&R Block provides the E&O insurance, is there any pressure on its agents to remain conservative and maybe not provide its clients with all their options to minimize insurance claims and losses?

Once a new tenant is found you have mitigated some of the possible loss.

None of that is a reference to how well you invested and whether you have a perceived loss or gain.

Get an attorney, if the permit was issued prior to the FEMA reg, screw FEMA and the city, thier mistake is not your loss, sue thier tails for the loss.Other wise, dump it and get what you van and walk away.

Someone told me that for passive investment, we cannot claim a loss and use the loss to offset our other income, if I include depreciation in my calculation, then I will have a loss in my rental ppty. thanks

Taxact is pretty cool because it keeps track of all that stuff (depreciation, carryover losses) plus I read the Nolo book on taxes.

Under these circumstances, will the C corp still subject to the passive activity loss limit if for a particular year the rental expenses are higher than the rental income?

The civil offense is your loss of the money.

Again I would like to hold this property as a rental after moving out, but suppose I could also use this as a short term place to live and do a 1031 exchange in the future, but would take a loss on selling and closing fees. 3] This is the more extreme, but possibly financially best, strategy in my mind.

Are you talking about an umbrella liability policy or a "commercial" policy that will cover multiple properties on one policy for loss and liability?