Hi @Linda Cunliffe, If you sell to a relative below market, the IRS treats the discount as a gift, not a deductible loss.

I believe that they'll have to provide evidence of the defect, the seller's knowledge of it, and prove that the buyer had financial losses because of it.

Welcome and sorry for your loss—using that inheritance to build long-term wealth is a thoughtful move.

@Ryan Montbleau this is what we do:A bad tenant can lead to thousands of dollars of losses via unpaid rents, legal fees and property damages.

I moved from Portland to Columbus in 2020 to invest and now own 10+ rentals here, and the macroeconomics are on fire—population is rising, job growth is strong, and huge companies are building and expanding here like Intel, Amazon, Google, Honda, Microsoft, LG, Facebook, and more.

I wish I had done a better job of protecting myself.

In most cases, an S-corp is not ideal for long-term rentals (you can lose flexibility on losses and step-up, and it complicates getting properties in/out of the entity).

You’re basically pulling future depreciation into this year.Two things to watch:Make sure the rentals are truly rental activities for passive vs nonpassive rules — big losses don’t help if you can’t use them.Get the study done by someone who actually knows residential rentals, not just big commercial.So: yes, you can do it now, yes, you can catch up, but no, you generally don’t get to go back and grab the old-year bonus as if you’d done the study in 2020.

HYSA is boring, but boring is what you want for money that has a job to do in 3–12 months.

For me the less turnover costs were at least equal to any revenue loss as to rate differential between 30 days and 6 months.