Once you have this figure, there should be a discussion on what you could do to defer or exclude the tax.When figuring out the tax burden, you should factor in all taxes(Federal and State).

House price, food, gas were excluded.

So everything excluding the basement? 

Contrary to what many would have expected, a large segment of the population (one from which, as a startup founder, I’m regrettably excluded from) has seen their purchasing power increase through the pandemic.

Contrary to what many would have expected, a large segment of the population (one from which, as a startup founder, I’m regrettably excluded from) has seen their purchasing power increase through the pandemic.

Even after him stating that we had our final bill, he's still added many thousands for things he says he forgot or missed and wants the money for that (this is excluding the latest addition of around $20k he wants now to cover his permits and such, which you'll see in the contract are all on him, but his language makes it seem like if we don't cave, he's going to have to walk since he can't adhere to the city's requirements without more money to fix the things he's done wrong).A lot of this also covers things from the second responder's post and I wasn't sure how to quote both at once, so I'll add in some more details in case it's needed.

If it were the other way around (rent it first, then live in it for 2 years) you would have some non qualified use which would create some gain that couldn't be excluded. 

Exempt:"A property containing two separate dwelling units (excluding ADUs and junior ADUs) within a single structure in which one of the units was Owner occupied at the commencement and throughout the tenancy."

Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

The examples provided do not include late rent notices, but I didn't see anything excluding it.