The system is rife with abuse and there doesn't seem to be concern over stewardship of the taxpayers' money to vet the candidates better or transition them out of the program, as intended. 

Originally posted by @Jay Hinrichs:Originally posted by @Greg O'Brien:@Jay Hinrichs sorry REP is Real Estate Professional (the tax definiton of one).If a taxpayer is a LP and does not meet REP nor Materially Participate under IRC 469, your excess losses would become suspended but ultimately utilized and released upon sale of the activity or from offsetting passive income from passive activities.however if he/she does meet the definition of REP  then they can participate in the cost seg bonus deprecation correct ? 

For example, in NY, default searches include county & municipal - open permits, Cert of Occupancy, outstanding tax payments and any tax related liens.

May will be interesting if the stimulus payments and unemployment do not reach the taxpayers. 

I politely explain that they are literally asking US to subsidize the newness,  on top of taxpayers subsidizing their rent in the first place.  

Taxpayers and consulting professionals should consider this strategy if they or their clients want to defer federal and state capital gain and recaptured depreciation taxes, prefer a more diversified asset portfolio and/or more predictable income stream, and choose not to acquire like-kind replacement property. 

Provided that the eligible taxpayer is the owner of the equity interest for Federal income tax purposes, status as an eligible interest is not impaired by the taxpayer’s use of the interest as collateral for a loan, whether a purchase-money borrowing or otherwise.

-However note that for real property the original use must be with the taxpayer or it must be substantially improved i.e. new construction or a major renovation - it does not look like turn key properties would qualify.

These studies allow taxpayers to reclass certain property from a 27 or 39 year property to 5-15 year property which will give you more depreciation in earlier years (helps with cash flow in the early years).

It may be too later to set that up now.The lender should also actively monitor tax payments.