An example is deeding a property valued at $100k from your name to your LLC or vise versa, you're now writing a check for $4,278.00 just to cover the tax payment to record the new deed, not including the recording fee and any fees collected by the title company or attorney representative who facilitates the transfer. 

The irs doesn’t care about the title holder, it only cares about the tax payer being the same on both deals. 

@Nick Mercurio Property tax payments are usually due twice a year, payable before the due date.

Since they both will own the Holding Company, it will technically remain the same "taxpayers."

Section 121 exclusion you are referring to asks: Did the taxpayer live in the home for 24 months of the prior 5 years?

Keep solid records of every rental money move, get cozy with the right tax forms, and think about making estimated tax payments throughout the year to dodge penalties.

Tax season is in full swing, and for most individual taxpayers, the looming deadline for filing and payment is Monday, April 18, 2022.

Hi Caleb Rehg,If you have employees you will have to pay quarterly PAYROLL taxes, but these can be taken care of by a payroll servicer such as Gusto or ADP.Otherwise, if you expect to have a substantial net income from the rental property at the end of the year, you may opt to make quarterly estimated tax payments so that you that you don't get surprised by a tax amount owed with your tax return.

Though the software in theory should be doing the "best" thing for the tax payer 

(Interesting story of how that happened, involving WWII).Looks like China and Japan own a trillion each of our debt, but we own theirs too, so who knows....let's see what the money guys say.Thanks for starting out my day with the knowledge that I (as a taxpayer) am $266,000 in debt...that makes my day 😂