Both of these things I can't deduct as expenses against my rental income.What did I do?

What kind of business can I start to take advantage of tax deductions.

You get paid quarterly passive income from rent checks in the form of dividends that are tax-advantaged (qualify for the 20% qualified business income deduction currently) and you have far less liability because you don't have a mortgage over your head.You can also grow your passive income and portfolio size much more quickly because you can compound your earnings immediately by buying more shares rather than having to wait several years until there is enough to make a new down payment. 

You do not get to deduct purchases of property against your income until you sell the property.You could defer the tax using a 1031 exchange. 

The deposit is typically owned by the tenant (until lawful deductions are made) & there will be regulations protecting the tenants’ rights.

My simple question: Can you deduct this from your rental income like you can mortgage interest, PM fees, etc.?

Interesting tax deduction that I was not familiar with. 

@Michael Morrison Whoever paid in the first place gets it back with an itemized list of deductions.

If I buy these things BEFORE I CLOSE ON MY FIRST RENTAL PROPERTY, can I still report it as tax deductions for 2021 (max amount I believe I am able to deduct is $5k in first year, start up business expenses, or whatever)?

hello BP community, I am in the very fortunate position of buying a little SFR for a long-time friend who has fallen on hard times and is in need of housing.If they pay a very small amount of rent each month to me (basically going to charge them just enough to cover property tax/operating expenses), is the property still considered "in service" / can I deduct depreciation for IRS tax purposes?