Best strategy to buy my condo

[Patrick Snyder]

I am currently in the process of rehabbing a condo and have found a potential buyer. She is going through a divorce and will be receiving an option regarding her 401k: either roll it over into an IRA or take it as cash. The question is, is there a way for her to use the money to buy a home (primary residence, not rental or vacation) without having to pay taxes on the "income"? Optimally, it would be great if she could purchase without getting a big tax bill next year, but with the research I have done, I'm not finding a way.

Anyone have any good news for me