Could use some guidance on how to divide the business, taxes, and payouts.

Hi Mandeep,The 100 sq. ft. of exclusive landlord space could be utilized in a Business Use of Home deduction on your personal tax return, accounting for 10% of your home expenses.

So I'm wondering if I maybe messed up when it comes to accounting and taxes while rehabbing a house to rent.

The purpose of course, is to save for retirement in either a deferred or tax free account. 

Look up local ordinances, laws, taxes, and insurance.

As to your primary residence exemption, if you don't live there and you claim primary residence exemption that would be tax fraud.

Only 10 related adults or 6 unrelated adults are allowed at a time[6].Required docs to operate an STR:To obtain a short-term rental license, you will need to complete a short-term license application and pay a non-refundable fee of $643, inclusive of a $50 notification fee[6].

That will provide you with confidence knowing there are no taxes owned or unpaid liens.I have worked with Lucia Rushton in DFW multiple times who can great agent and it is well worth using her to avoid painful mistakes! 

A 50 unit building has one property tax bill and one insurance bill.

Google Search came back with, "When does capital gains tax not apply?