You can deduct all ordinary and necessary expenses, such as taxes, interest, repairs, insurance, management fees, agents' commissions, and depreciation.Do not deduct the value of your own labor or amounts paid for capital investments or capital improvements.The good news of passive investing is no SE tax.

The rules continue to get more complex, like I said the Tax Code is thousands of pages, it's updated constantly, doesn't always make sense and useful information is buried in pages and pages of stuff that doesn't apply to 99% of taxpayers. 

Like other value-add items, this can make an ordinary property, extraordinary.   

If the need for repair is a result of damage done by Tenant and/or their guests, and not that of ordinary wear and tear, Tenant agrees to pay for the repair.

I haven't spent enough time in the house to experience anything out of the ordinary, but I will say, the tenants in this house are some of the strangest people I have ever met.

Earned interest is seen as ordinary income whether through a business or personally. 

Assignments Can be for ordinary, legitimate reasons.....changing the entity one is using to buy it, adding partners, etc., but legit assignments always end up with buyer actually buying the property.  

Furthermore, if your rental activity results in a loss for the year, you can use the net passive loss allowance to offset up to $25K in ordinary income on your 1040.Most of these tax advantages would be lost if your rental property is held in a C-corp.You still have all these tax advantages whether you own the rental property in your own name or in the name of some passthrough entity such as an LLC or an S-corp. .As far as I can tell, there are no tax benefits available to a rental property activity owned by a passthrough business entity that you don't enjoy as a sole proprietor.

It sounds downright unpatriotic prohibiting ordinary folks from investing in real estate like that.

@John T. try this;One idea that I have read about, but never known anyone personally use it is this;Depending on tax brackets for ordinary income (interest) and capital gains, adjust price/rate as needed for best tax treatment.