You want to exempt your original capital or deduct the time that you lived i it. 

Then from there just perform the normal move out and deduct from their security for damages where appropriate. 

As such, payments that you make need to be prorated between business deductions and personal deductions.

Good debt is mid-2%, tax deductible, mortgage interest. 

No monies have been paid out yet.The home is in Lake county IndianaThis is the clause in our agreement.Casualty Loss: Risk of loss by damage or destruction to the Property prior to the closing shall be borne by Seller, including any deductible(s).

You would think this would be obvious, but on an estate filing (1041) the only Standard Deduction mentioned is for a bankruptcy estate at $12.2K.

He seems to not be very transparent on issues that come up though- he does not let me know the issues and the cost of repairs until the end of the month when I get a statement with deductions for repairs (I'm referring to major issues and repairs costing upward of $500). 

The use of leverage in an IRA does create a small tax exposure where the percentage of the income attributed to the non-IRA money (borrowed capital) is taxable, but the applicable deductions make the net tax impact pretty nominal.  

It will be treated as income but you deduct the water bill against it so it should come close to zeroing out.

Because real estate affords generous deductions, the tax impact is generally minimal.The focus of real estate investing with an IRA should be to create passive income such as from rentals.