When we follow up it takes multiple business days and sometimes more than a week to get a response. 

The IRS views it as taxable income because it’s not being used for the purpose of deferring taxes under the 1031 rules.For example, if you sell a property and only use part of the proceeds for the next investment, the leftover amount (after paying transaction costs, etc.) is taxed.

Thank you for your response. 

Quote from @Rick Ilich: Thank you very much for the quick response!

The client will be solely responsible for capital gains taxes, including depreciation recapture, regardless of the agreement to share proceeds.

@William J Anderson you want assistance in analyzing T-12s for the purpose of purchasing a property?

The $200k financing would serve as a purpose to be a downpayment, or do you want the $200k to be the top limit of the investment?

I am just starting out with a STR and found that VRBO is not very specific if they are collecting the tax and paying it to the State as a marketplace facilitator or am I responsible for this tax collection and payment ?

I appreciate everyone’s feed back and responses!

You could, for the purposes of verifying that you are not renting to someone who is potentially dangerous or financially incapable of shouldering the burden of being a roommate, ask them to apply through Zillow so that you can see their background check, that also gives you the opportunity to have others who might be interested in being your roommate as well, apply.