For the amount you can deduct: https://www.law.cornell.edu/cfr/text/26/1.190-1For what qualifies: https://www.law.cornell.edu/cfr/text/26/1.190-2Your specific question, how to actually make the election: https://www.law.cornell.edu/cfr/text/26/1.190-3 If it were me, I would include the deduction on a separate line on your Schedule E with wording such as "Sec 190 architectural and transportation barrier removal expenses" or whatever your software lets you fit.

My thought is if the original purchase were structured properly, there would be no need for a second purchase (which might trigger a new 12-month occupancy requirement).Assuming I need a second name on the loan to allow someone else to occupy, I need to do more research on what it would take to remove that other person from the loan later (ASAP after the 12-month occupancy is fulfilled).

In BC, it is more difficult removing a tenant where no Tenancy Agreement exists.

In close neighborhoods, different complex condos, are selling for 70-80k range.The mortgage rate will go up in year 8, but I already know how much, I still won't be loosing money. 

@Steven Mitchell, they are doing you a favor by removing themselves from your list. 

Offer has been accepted and I have to finalize within a day or two if I should back out before loosing my earnest money.  

Needs a lot of work but it looks like from the pictures (haven't walked the property) that the floors and such have already been removed like someone was going to try and rehab it.

The additional inspection was performed by an abatement expert and went towards the price of removing the asbestos.

***Please note any posts offering agent services will be removed.

New flooring, paint, updating countertops, removing popcorn ceiling, upgrading appliances, updating bathroom, etc...