This is probably the best control you have over your tax payment.

For almost everything the typical taxpayer has questions about, statutes (so the actual laws written by Congress) are basically highest level "authority" followed by Treasury regulations (which are the nitty gritty details fleshed out by the Internal Revenue Service at the direction usually of Congress).When I quoted from Section 168(e)(2)(A)(i), e.g., I was quoting statute, so highest level authority. 

Social Security Number or Individual Taxpayer Identification Number (ITIN), additional documentation may be required to verify their identity and credit history.

Trade or business activities are activities, other than rental activities or activities that are treated under § 1.469-1T(e)(3)(vi)(B) as incidental to an activity of holding property for investment, that—(i) Involve the conduct of a trade or business (within the meaning of section 162);(ii) Are conducted in anticipation of the commencement of a trade or business; or(iii) Involve research or experimental expenditures that are deductible under section 174 (or would be deductible if the taxpayer adopted the method described in section 174(a)).

Property Tax Clearance (Impuesto Predial)Request proof of up-to-date tax payments.

Deductions are a matter of legislative grace and the taxpayer bears the burden of proof, both of production and persuasion.

Keep in mind, once the election is made to opt out, the taxpayer cannot opt back in to the same asset class unless the asset types within the same asset class have been replaced.

Why not rent to tax paying American Citizens for $1,000 a month.

If renewed, it could (once again) unlock major tax advantages for W-2 earners investing in STRs.There are several articles that do an exceptional job of explaining who, what, where, why and how tax payers qualify for the STR Tax Loophole - one I often share with client and in our STR newsletter was written by Joe Chiappias with Taxclimate.com.📝 The Short Term Rental Tax Loop Hole: A Game Changer for W-2 Wage Earners"What’s the Big Deal?

It remains controversial, and if you want to become the first taxpayer to take CA FTB to court over this, godspeed.