I know there are certain liability protections, but I'm more interested in the tax implications.

Better to start on sound legal and tax footing.

You can Sell you Home Tax-free for up to $250,000 if you live in it 2 out of 5 years.

-Julio Hi Julio, Thank you for responding.What is Engineered Tax Service?

The advantage to the seller can be the seller will pay taxes on the amount sold plus will receive the remaining amount in 3 years time, please talk to a Real Estate Attorney/Tax Adviser to confirm the advantages for the seller carry.

You did not account for property taxes. 2.

Assuming cost segging a rental is the only way:condo or townhome/SFH with NON depreciable landnewer property/fixtures vs older propertyNOT a pro newbie landlord vs REPself manage or prop. mgmt. co.GOAL is biggest tax bene.NOT best cash flowing deal

I'm a former CA resident and moved to Nevada (Lake Tahoe / Reno) because the housing is less expensive, no income tax, landlord friendly, and one of the lowest property taxes in the country. 

The money you make is tax-free if it's your primary 2 out of the last 5 years (if you rent it for a while, I believe there are some taxes, but it's prorated on time based on what I remember - not tax advice).

You give the vendor the completed 1099 and you report it also to the IRS in your tax filing.