The interest you pay your 457 back would also be deductible on the applicable schedule.One other possibility is depending upon your tax bracket and several other various situations, you may want to consider either an S or C corp(if your flipping) in which to start a self direct solo 401k to roll over your previous proceeds into.

You may then deduct the FMV if the services on your Schedule E.

For example the deductible, he was very militant about this.

But I guess it would be safer to use the 30%.Less deductions in depreciation, but a smaller capital gain when I sell.

The valuation of 401k assets must be accurately determined to ascertain (1) Prohibited transactions; (2) Exclusive benefit violations under IRC 401(a); (3) Violations of the limitation on benefits and contributions under IRC 415; (4) Excess deductions under IRC 404; (5) Violations of the minimum funding requirements under IRC 412; or (6) Discrimination violations under IRC 401(a)(4).

Especially if you can cash out and still cash flow plus receive the tax deductions on both of the rentals.

Additionally, they were both self-employed borrowers that had been "aggressive" on deductions.

here's a quote I received today from them:Renovation Project - Builder's Risk PolicyBasic Form CoverageActual Cash Value$75,000 Insured Value$1,000,000 Premises Liability$5,000 Deductible, $EXCL Deductible for Theft$53.50 MonthlyUsually my deductible is around 3,000

Even though my predictions are pretty good, I never calculate at full market, I deduct a minimum of $50 from what I think it should rent for.The third thing you may do as a beginner, is give concessions to good tenants for fear of not getting them to sign.

.* Security Deposit interest (simple interest paid yearly on the occupancy date)* Rent board fees deducted from the security deposit interest.* Parking fees separate from rent.Wish-list:* Parking space assignments.* Tenant key assignment tracking.* Laundry machine coin and cycle meter tracking* Telephone access system control information.