They haven't paid this month's rent yet...HOWEVER< they filed a complaint with the city inspector for a different reason...so i am worried about retaliation..YET< they are late on rent and they caused damage to the kitchen.  

Real Estate Rewind Starting overhttp://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-bookGood Luck Paul 

Real Estate Rewind Starting overhttp://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-bookGood Luck Paul 

@Jeremiah Hilliard, if you owned and lived in the home as a primary residence 2 of the last 5 years, you have a capital gain exclusion of $250k (gain) if you're single and $500k (gain) if you're married filing jointly on combined lien amounts up to $1.2MM on a primary and secondary residence. 

I believe there is a bankruptcy involved. 

Real Estate Rewind Starting overhttp://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-bookGood Luck Paul 

Real Estate Rewind Starting overhttp://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-bookGood Luck Paul 

Therefore, if you have income properties coming from 2 states, your accountant will need to file an LLC tax return in CA and need to separate out only the revenue from CA, otherwise, including revenue from other states will increase your chances of getting hit with the LLC fee.  

Real Estate Rewind Starting overhttp://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-bookGood Luck Paul 

It seems like you got one good lead from them that panned out and decided to file form 1065 immediately thereafter.