Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain.

I really suggest you change your goal from making a tiny taxable cash flow (anything less than $1,000/mo per door.) until capex eats it up.

Income taxes- ask if your  insurance claim not taxable income.  

Tax-wise, only the rented portion is deductible, and depreciation recapture applies on sale, increasing taxable gains.

They lower taxable income for federal taxes but not for FICA.However, employer contributions made by the S-Corp are not subject to FICA and count as a business expense.Make sure your W-2 correctly reports wages, deferrals, and FICA wages.

You can elect to be classified as a partnership or an association taxable as a corporation.

The last 3 years I gave away more than half my taxable income and last year I gave away 4 to 5 times my taxable income which perturbs the scorecard.So for me, I plan to stop when it is no longer fun. 

The insurance payout also impacts your taxable gain.

You are converting their tax free gain in to a taxable gain.

If a cost segregation study was performed, the accelerated depreciation may further reduce the property’s basis, potentially increasing taxable capital gains when sold.Depreciation recapture will occur when you sell the personal residence, so it’s essential to keep detailed records of all depreciation claimed while the property was used as a rental to ensure accurate tax reporting at that time.This post does not create a CPA-Client relationship.