Joint Venture is when you just split equity pro-rata on dollars put into the deal.

At a general level, capital gains taxes are recognized when the income from sale is received -- so a seller pays a pro rata share of capital gains on the purchase price as payments on the note are made. 

One thing I want to mention is to be wary of the pro rata rule.

If the tenant has failed to comply with the 30 day notice obligation and you have been unable to rent out the property within that time, then you may consider deducting a pro-rata portion of the rent or other losses from their deposit.

This looks like: - dissolve your LLC - file a final tax return for the LLC - distribute out the LLC's assets pro rata to each member (this is a tax-free distribution) - each member takes title to an undivided interest in the properties in a TIC structure - then you can sell We deal with this sort of thing literally every single day of the year.  

The allocation of adjusted tax basis into new properties after a 1031 exchange is done pro rata.  

Let's look at 2 scenarios: If you used it personally for the greater of (1) 14 days or (2) 10% of the rental days, the property is considered to be a residence, not a rental, and depreciation would be allocated on a pro-rata basis.

HPC will arrange the transfer of a pro-rata share of the 12 Bridges assets to Vista of the four short-term rentals in Scottsdale valued at $3,209,709 to cover the shortfall partially.

Presumably, your Airbnb rates would need to be a pro-rata daily rate based on the prior rent, which would probably be too low to be worthwhile for a periodic rental.  

I know I will have to pay incomes taxes as apart of this conversion, but I've been doing some reading and can't seem to understand if I will also be hit with additional taxes as a result of something called "pro-rata rule".