Requesting help on what the gross taxable and deduction amount is entered in the lodging report for the city and state.. my Airbnb Vrbo charges occupancy tax for the guests already.

If there’s any chance one property could be valued MUCH more than the other move in to the “cheaper” side. 

The 1031 exchange deferred the taxes from house 1, and those taxes carry over into the basis of house 2.In your example, your basis in house 2 is $300K (what you paid), so if you sell it for $400K, your taxable gain is $100K.

Ok, you have $5,000 of taxable income, at ordinary rates (the bad kind).Oh, it's completely worthless, you say, like $0 value?

When the property is sold, the depreciation recapture rules will apply, reducing your tax basis and potentially increasing your taxable gain.This sounds like it is straight out of chat gpt and does not answer my question. 🤣  Completely agree

Tax free ATM withdrawals are ALWAYS going to be favorable over taxable ATM withdrawals. 

You’ll still need to pay tax on depreciation recapture from the period it was rented.If you sell after March 2026, you’d lose the exclusion and the entire gain would generally be taxable.Oregon doesn’t impose an extra “penalty,” but it does follow federal rules pretty closely—so you’d owe state income tax on any taxable gain that isn’t excluded federally.In short: sell before March 2026 to qualify for the exclusion, and plan for some tax on the depreciation you took while it was a rental.Perfect advice, right on the money! 

Selling one property to add a liquid, taxable account for college/retirement flexibility is a totally rational move — especially with kids about to hit college and you wanting to retire in 10–14 years.One thing to double-check:Since the sale is 11/24/25, make sure the tax estimates line up (federal, Colorado, NIIT if it applies, depreciation recapture).

STR and REPS are great, but you need to learn about reverse passive planning if you want to play like the wealthy.The goal is to create legitimate nonpassive losses that can help reduce your taxable income.To make the strategy count for your 2025 return, the property needs to be placed in service by December 31, 2025.

Your taxable gain would be the sale price ($250K) minus your adjusted basis (purchase price $200K + $10K improvements = $210K), so $40K is correct.