I’ve lived here for eight years and have built up some equity through backyard renovations—including a brush finish concrete patio, a gazebo with electricity, a deck, landscaping, and a gas grill.

7 properties on 1 P&L is out of the ordinary, and they may have done you a disservice without mentioning that to you and offering some consult. 

One route some investors explore is accelerating depreciation through cost segregation on rental properties, which can create large paper losses to help offset ordinary income.

It simply means that, for tax purposes, your rental activity is not considered passive, so you can use losses to offset other active income.Unless you’re providing substantial services (like in a hotel or short-term rental scenario), your rental activity remains a Schedule E activity and is not subject to self-employment tax.If you're truly REP-qualified and materially participate in your rental activities, you can legitimately deduct your real estate losses against ordinary income.If your accountant insists on reporting rental income on Schedule C and says REP status requires it—yes, it may be time to find someone more experienced in real estate taxation.

I’ve installed a completely turf backyard, putting green and lounging patio area.

Instead, you can unlock 100% bonus depreciation on assets with a useful life under 20 years.This includes:•Furniture & appliances•Flooring•Window coverings•Landscaping & outdoor lighting•Fencing, driveways, and patiosThese can often make up 20–35% of the purchase price — all potentially depreciated in Year 1 with a cost segregation study.Cost Segregation Friendly Features = Faster Write-OffsCertain property features allow you to break down the building into faster-depreciating components:Look for:•High-end finishes (luxury fixtures, lighting, smart tech)•Pools, patios, outdoor kitchens•Detached garages, ADUs•Upgraded appliances and built-insThe more non-structural components a property has, the more value a cost segregation study can carve out into 5-, 7-, and 15-year buckets.Newer or Recently Renovated Homes = Richer DepreciationNew builds or heavily renovated homes often pack in:•New HVAC systems•High-efficiency appliances•Premium flooring, tile, and cabinetryNot only are these attractive to guests — they’re also gold for depreciation, since they’re assigned shorter useful lives and can be depreciated more quickly.Higher Purchase Price = Bigger DeductionsIt sounds obvious, but worth repeating: the more expensive the property, the more there is to depreciate.A $1M STR might yield $200K–$300K+ in bonus depreciation in Year 1.

., 8 percent for commercial property) and possibly assign diminished value to or reduce the amount of gain allocated to short-lived assets (Section 1245 property) taxed at ordinary income tax rates by allocating more gain to the building's structural components (Section 1250 property) taxed at a more favorable tax rate (up to a maximum of 25 percent) upon sale.

Holding Less Than One Year = Short-Term Capital GainsIf you do have a gain and the holding period is less than 12 months, the gain is treated as short-term capital gain, taxed at your ordinary income rate (up to 37% depending on your income).4.

From various forums, it seems they are taxed as ordinary income and not qualified dividends. 

The $25K tax loophole you’re referring to is part of the Active Participation rules under IRS Section 469, which allows real estate professionals (or those who actively participate) to deduct up to $25K of rental real estate losses against ordinary income (such as your wages) — assuming you meet certain conditions.Here's how it works when multiple people are involved:How It Applies to Co-Owners:If you and your brother are both co-owners of the STR (short-term rental), the $25K deduction is typically applied to the entire property, not per person.