In general, capital gains from the sale of an asset may be subject to taxation.

There's now a competing bill in Colorado about property taxation of short-term rentals. 

-and will be benefit enough to trigger taxation.

If you need any recommendations for CPAs specializing in real estate taxation, feel free to reach out.

I thought in some instances married owners were treated as one, so I'm not sure.I think the issue is how is the NC taxation filed. 

Would that 67k offset the 125k passive income saving me roughly 24,958 in tax. (67,454 * .37).Or said differently, the 125k and passive net income would be reduced down to roughly 57,000 and that 57,000 would be subject to tax at 37% (vs the entire 125k).Thank or if this question is so basic!

So, the taxation is really the same. 

Taxation is at the individual level.  

That's a taxation status, nothing to do with its legal status. 

Don't hae to think about / worry all the various deferred taxation with equity real estate investing.