So I paid the $50 to get live advice from TurboTax, and the person suggested that I enter the money spent last year on demolition, water and sewer fees as a loss in Miscellaneous Income, and have those receipts ready should the IRS call for proof. Does anyone have an opinion on that? As of now, I plan on rebuilding rental units in a 5 year timeframe, but you never know what is going to happen and it's always possible that I'll just sell the now empty lot.
