Going forward, it would appear to me that now I need to retroactively establish the basis in the respective property, now subdivided.

Sounds like a hokey deal and there are a lot of 'what ifs' and risks that could result in attorneys, courts and a lot of legal costs.

So, you need to look at every property even if the numbers first appear to bad and then stretch out the numbers with rent increases, appreciation that results from rent increases and do your numbers over a 5, 10, 20 and 30 year period.

For that that don't and collection efforts break down that is what the courts are for. 

:@Reid ChauvinCorrect me if I am wrong but I don't think you can charge a pet deposit for ESA.After a quick google search you appear to be right.

Best long term solution in my opinion is to convert the space to as low maintenance as possible while maintaining attractive appearance.

I'm trying to get together an Itemized Security Deposit Deduction Form and then maybe take them to small claims court for unpaid rent.

However if you ever have to take the tenant to court you will have a bigger problem.

Using the same local bank I have been able to continue using the income from the leases from the buildings I’m buying towards new buildings even though it has not yet appeared on my taxes as I have not owned it long enough yet.

In most cases, if someone discovers you're serious about taking this through the court system, they'll try to get things resolved without having something on their background.