How are my taxes calculated and what years would I pay for the profit I make?

How do we demonstrate (for taxes) the rental of our home?  

Since you requested any book recommendations, I wanted to point you towards Tax Free Wealth by Tom Wheelwright. 

If you don't want to keep them then wait for 60 days prior to the end of the contract and notify them.Good Investing...

If your parent’s currently occupy the home, at death if you move in you can get their property tax basis. 

Definitely discuss w your tax advisor too.  

., 17.5 years remaining for residential property).New Schedule: Simultaneously, start a new depreciation schedule for the additional cost basis attributed to the replacement property, following standard timeframes (27.5 years for residential, 39 years for commercial).Option 2: Treat as New AssetCombined Basis: Treat the entire cost basis of the replacement property (carried-over basis + additional funds invested) as if it were a newly acquired asset.Single Schedule: Depreciate the total cost basis over the standard timeframe for the replacement property type (27.5 years for residential or 39 years for commercial).If you choose option #2, you need to file an additional form (4652) with your tax return. 

If its a 2-4 unit you only need 15% down using a True Portfolio program and you have DSCR as a back up that uses the STR rents to qualify and avoid personal tax returns or income.  

Consult with real estate experts for guidance on legal obligations, tax consequences, and financial strategies.

Look at rental rates, vacancy rates, and typical property taxes in your target area.