And tend to be either geographically localized or topic specific. 

Not an accountant so just my opinion as someone who pays a large amount each year to my accountant, I think I would switch accountants if they charged me to send a letter requested by the IRS requiring an explanation of how they actually prepared my taxes.  

@Annette BarnettExcellent.Remember real estate is a long term game.The finish line is 5 to 10 years from now not next year.If I may offer one other suggestion:While I totally support diversification when investing, there is also a big advantage to drill deep rather than spread thin especially with smaller properties.I believe there is lots of reason to invest in a narrow geographic focus.In every new market you invest in, you need to form a new team - real estate broker, property manager, contractor, insurance broker etc etc etc.And learn a new market.If you are happy with your Indy investment and your Indy team, buy another property there.

But I appreciate the explanation, thank you!

Wow what an explanation though.

Hope this 'non-tax professional" explanation helps...

@Timothy Hero Thanks for the explanation. 

Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

Phase outs are simple enough to review and look into..he/she should have given you a better explanation.

My original application to the ZBA includes an explanation for each item on the "checklist" that I need to show in order to shift the burden.