Your CPA can allocate the cost between all the residences and then you can split the sale accordingly and get your exemption, and either report the gain/loss on the rentals or do a 1031 exchange.

You might be intentionally creating a business loss on the taxes that might run the risk of getting an Audit?

Net income on taxes 2021 plus 2022 CPA profit and or loss equals 43 back end DTI. 

See your PM co would have known this (or they should) and it would be rented by now :) BTW I live in SC, HOWEVER I am a Gamecocks fan, so I can FINALLY say , sorry about Clemsons loss, well not really ,  LOLAll the best 

A few other things that help to balance the risk I feel is that we are buying the home significantly undervalue due to the inflated interest rates (was listed at $500k in late July purchase price of $410,000) so there is a good chance the price goes up and we can sell at not a loss if we really need to pivot hard.

Can I afford that loss? 

As I understand it, if you have considerable hours managing your own property (I think it’s currently 750 hours per year) you can claim real estate professional and take losses against w2 income.  

Well if that’s the case from my understand and if I’m mistaken someone please correct me but the only tax break you get on that “loss” is interest not principal payments for the mortgage, so all the income that’s going towards your principal payment is still being taxed as your income.

This was a tremendous win for real estate investors, and it provides a unique opportunity for the passive investor to take advantage of tremendous passive losses the first year they invest in an investment through the syndication model.In the same example as above ($375,000 house with land worth $100,000), your depreciation expense could be closer to $100,000 in the first year compared to the $10,000 per year for $27.5 years.

In many ways i am with them for the wins and loss's without having to spend my own money.