A 1031 exchange enables you to defer the taxable gain if you roll the proceeds from the sale into the purchase of another property using a specific procedures. 

We would report as rent collected - the total amount of rent we collected throughout the year.We would also be entitled to claim all the expenses that we had throughout the year.We would report a likely higher taxable loss without the rent than if we had collected it.

Note that this would likely not be a taxable event.If you were to draft loan documents then you would record interest expense of 5k on your LLC (which would be tax deductible), but then you would have to record interest income of 5k on your tax return (which would be taxable to you). 

But the IRS views that as taking profit and wants the difference to be taxable.  2.

If there's a profit in the end my taxable income will be reduced thus offsetting the tax I paid in earlier years, so, I think it does 'zero' out.I don't think anybody truly understands how this all should be done, probably not even the IRS. 

Wait until its in the best condition, the taxable amount of the structure would be the highest, thus depreciation would be the highest.

If you can't pay, it's a taxable event. 

Everything broken out as personal property may be taxable "boot" and subject to depreciation recapture during a 1031 exchange. 

Go to the assessors office they can find the address or parcel number from there you can go to the county recorder and look up who owns the property and what they’re taxable mailing address is.

Hi everyone,I am a vet and using post 9/11 gi bill which gives you non taxable housing allowance while attending school.