I assume since I have plenty of basis, I would pay no tax as I'm not overdrawing my basis.

From what I know, the only state that will tax a Texas LLC is CA if you live there. 

My properties in 2 states account for about 80% of my cash flow, but the 4 SFH I have in Birmingham account for only 20%.I don’t want to sell as I’ll incur lots of tax (as they were part of a 1031 in the past), but wonder any strategies like seller finance, etc that could possibly result in higher returns on these properties.I am curious what other BP landlords do when a few properties in their portfolio aren’t pulling their weight….Thanks!

@Shay Sherbotseli The tax a withholding on the gross sale price of the home.

Do not forget the state tax as well.At the federal level, if your marginal tax rate is 12%, depreciation recapture tax rate is 12%if your marginal tax rate is 35%, depreciation recapture tax rate is 25%

Seller i hesitating to pay Capital gain tax as a lump sum payment. 

Keep in mind you can keep it as a rental for up to 3 more years, and still sell without paying capital gains tax. As

@Nathan Becker one thing to consider specifically in TN is the F and E tax as it relates to LLCs.

Vacation homes take some planning, I personally think shooting for break even profit/loss with a vacation home is a good tax strategy but if it is a cash cow I would gladly just pay the tax as you still come out significantly ahead and if you have one I probably wouldn't bother with a cost seg study unless you are getting extremely high rents.

i have single-member LLC rental generating income on the side operating as STR. From the single-member LLC, i pay myself 100k last year to max out on the solo 401k contribution, while still having a W-2 as an enginee...