That’s insane.Protest your taxes people.

If your rental "loses" $10K per year, sure that's tax deductible, but it's certainly not a tax credit.

(Resulting in only 2/16th tax free (12.5%)) Then you can choose to do a 1031 with the reminding 25% or pay the taxes.  

Hey Zach,I am not a tax professional but I am in my 2nd househack and it is my understanding that you are correct on the washer and dryers.

I try to meet with all my clients at least once before tax time.

We’re looking for a tax professional who understands medium-term and short-term rental properties.

What I typically see work better in situations like yours is: (1) using one or more LLCs for liability protection, (2) being very intentional about how ownership percentages are set between you and your fiancé, and (3) coordinating the operating agreement with your tax filing approach now and after marriage.

Most of us underestimate property taxes (I did too).

For many investors in similar situations, the end goal is to have real estate losses help reduce W-2 income — but that’s not something that just happens automatically.

No way to answer your question without knowing your overall financial situation, your goals and so on.