No further direct deductions can be made ie depreciation, MAGI>150k.Looking for a passive income investment 100-200k preferably syndicate with 5-10% returns but more importantly a K-1 depreciation loss through cost segregation to offset the other business income.Obviously no guarantees but I know there are certain funds or syndicates that can front load depreciation that would benefit someone in my situation.

Maybe offer an extra $1,000 or two to cover their deductible and incentive for them to file.

First of all you pay tax on all the net income.If you live in the property for more than 14 days you to start pro-rating your deductions which will mean you will  pay more tax since you have less deductions against your income.

The other things to pay attention to are:- Make sure the coverage for Loss of Rents/Additional Living Expense are high enough for the combinded rents- if coastal, pay attention to the wind deductible (can be up to 5% with some companies)- check to see if it is in a flood zone. 

I don’t live my life on What Ifs but IF my taxes go up I’ll just need to buy more property to have more deductions.

@amandahanUnless you have a special allocation provision that is supported by substantial economic effect in your agreement, you both will take the cost seg depreciation/deduction allocation per your ownership percentage. 

Can I deduct these as business expenses for 2020? 

Average decent duplex $500k~ My income from 2020 was $20k~ after deductions before deductions probably $50k.

Difficult to tell without knowing the tax status of the holding LLC (partnership I presume) and subsidiary LLC (disregarded entity I presume).If the LLC has no items of income, deduction or credit, a 1065 isn't required, but certain states may still require a partnership return even if a federal return is not required.Please don't try to DIY a 1065. 

Could you deduct the cost from their security deposit?