@Robert E Sabo, thank you I could definitely see that being true but I’m not familiar with Arizona at all yet so I would have no idea and don’t think I’m leaning in that direction so thank you so much!

The proof will be on your Schedule E. 

@Robert E Sabo thank you, how’s Tucson doing?

Or before you ask , Give like casual stuff  like, One day ( if you are in constant communication with her , helping you in other stuff) just send her a random Starbucks e-gift (very is , only takes 1 mins on your phone) Also another day ( what ever service or product you have) you can give her like a free trial ( randomly!

FWIW an s-corp is used for running "active businesses" where a default state of the typical LLC is tax wise pass through to your personal 1040, the ideal scenario for holding rentals;  in a pass through LLC, where taxes pass through to your 1040 schedule E for rentals.Rental tax regs are actually quite simple for the Schedule E, even the newer 179, di-minimus, and bonus depreciation.  

Every year I report the interest from the HELOC on the schedule E for the investment property.

I did look at the new student rental legislation which definitely concerns me a little but I assume old townhomes on E 5th St are still in the game?

@Bob E., You can. 

@Jason E.

We never really noticed an increase in our PG&E bill but I'm sure the extra cost was there.