Our first comment in these cases is "Please ensure that you file a claim with the company that you have your renter's insurance policy with because these types of losses are the responsibility of the tenant".

Quote from @Jeff Goldenberg: Hi All,In anticipation of bonus depreciation returning to 100% as part of the new tax bill, can anyone recommend a syndication they have experience with that creates paper losses with some moderate cash flow?

The rehab estimate is itemized to a certain extent. 

RE Pro Status & Tax Deductions:To unlock carryover passive losses in 2025, your daughter must materially participate in managing the property and treat the activity as rental, not personal use.Previously suspended losses will not be released because of the current year REPS status.

This means the income and losses aren’t automatically considered passive.If you or your spouse materially participate—either by spending 100+ hours and more than anyone else (including cleaners or managers), or by putting in 500+ hours total—you may be able to treat STR losses as non-passive and use them to offset W-2 income.

But items within the building (e.g., appliances, flooring, and landscaping) have shorter lifespans and can be eligible for accelerated depreciation, and even 100% bonus depreciation under Trump’s new “Big Beautiful Bill,” if the property is acquired after Jan 19, 2025.

If you have a lot of expenses, renting the property at a loss, have other properties that you'd like to invest in.

It is very difficult to use losses on passive income to offset other income. 

Currently, I have this following DP3 policy that will be the renewal:SECTION I – PROPERTY COVERAGES LIMIT OF LIABILITY PREMIUMCoverage A – Dwelling $265,400Coverage B – Other Structures $5,308 IncludedCoverage C – Personal Property $5,000 IncludedCoverage D – Fair Rental Value* $26,540 IncludedCoverage E – Additional Living Expense*:*Coverage D and E combined, limited to 10% of Coverage A for the same loss (see policy).SECTION I – DEDUCTIBLES:In case of a property loss, we only cover that part of the loss over the deductible(s) stated:All Other Perils other than Hurricane Deductible:HURRICANE DEDUCTIBLE: 2% of Coverage A Sinkhole Deductible: Not Included$2,500$5,308SECTION II– LIABILITY COVERAGESCoverage L – Personal LiabilityCoverage M– Medical Payments to Others$100,000 $0.00$2,000 Included☺️

@Pavan K.In general, real estate losses via operational loss or depreciation deduction can not be used to offset ordinary income (W2) if one’s adjusted gross income is over $150,000.