Also I’m thinking I need to charge an extra tax as well on my room rentals?

Earned income subject to self-employment tax. As

@Jeff B. and @Jarrod Williams - This is a question I would ask the excise tax folks.If they are coming up with 16.07% it could be based on two factors....1) The City of Lexington may have their own fee/excise taxor2) As I mentioned above, the "state fee" of 1% may be subject to the sales tax and possibly the hotel tax.  A

The rule is you pay no capital gain tax as mentioned above if you lived in the property 2 out of the last 5 years before you sell it.

I don't know how it is where you live, but here the citizens get to vote on whether to give their schools more money, and those funds are added to property taxes (occasionally there is an income tax, but 90% of the time it is a property tax). As

Yes we want to pay as little tax as possible; however, you want to do it legally AND you want to be sure that you can justify it.REP is a big audit issue at the moment with the IRS as there are MANY who claim it even though they do not qualify.

The receiver simply receives the property with the gifter original basis (plus the gift tax as mentioned above).

I wonder if it's worth it to just do tax a planning session with a tax accountant.

Some even do furnished MTR just over 6 months to avoid tourist tax as well.

i think you'll find that over time a strategy where you maximize income, minimize taxes, and accept some tax as the consequence of success your net worth will enjoy leaps and bounds.