SK – I have yet to be able to demonstrate that I spend >=750 hours/year managing the props. So it’s been counted as passive income instead of a business. Am I missing something?

Flu – I hope you’re right. The new tax “law”, from what I have read, only mentioned the $10K cap. I interpreted that as a hard cap on how much you can deduct regardless of income or other expenses incurred wrt the rentals. For example, if the rental generates $15k in rents and the interest for the rental is also $15k, your taxable income will be $5k instead of $0 as it has been in the past.