This is out of an article that should help you get your research started: A taxpayer may not deduct losses sustained in the demolition of buildings and their structural components.

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

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.

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

@Joel OhA taxpayer renting a "dwelling unit", such as a house, apartment, condominium, mobile home, or boat on a short-term basis, from a single room to the entire property, typically reports the rental activity in their individual tax return on Schedule E.

To qualify as a real estate professional, a taxpayer must meet the following two criteria (IRC Sec. 469(c)(7)(B):More than one-half of the personal services performed in all trades or businesses by the taxpayer during such taxable year are performed in real property trades or businesses in which the taxpayer materially participates, andSuch taxpayer performs more than 750 hours of services during the tax year in real property trades or businesses in which the taxpayer participates.You must also meet material participation requirements for each rental (or group the activity). 

@Lane Kawaoka"willing to check the box"...a little dangerous...The taxpayer is ultimately responsible for what's on their return. 

I have seen to many people try to do taxes themselves and then we have to go back 3 years and amend the returns because the taxpayer either is exposing themselves to audit risk or missed out on a great deduction that would have resulted in a larger refund 

Thanks.Sure, I would guess that most people not well-versed in property investments don't understand the amount of tax payable when you exit the investment.

2) Each taxpayer has their own tax rates to consider - Federal and state tax rates.When determining state tax rates, they need to potentially calculate the state tax rate of the resident state and the state where the property is located in.