Can anyone verify the tax treatment as of today that a gain from owner occupant unit is applicable for Sec 121 exclusion, and a gain from rental unit is applicable for 1031 exchange?

However, precise execution according to IRS rules and clear documentation in the divorce decree are crucial to ensure it qualifies for tax-free treatment.

They could have come in with the moving boxes, which is the most likely culprit, but they could have snuck in some other way.My lease says I will deliver the home pest-free and handle any pest treatment for the first two weeks in case we miss something.

The key factor is ensuring the property qualifies for favorable tax treatment by adhering to IRS rules regarding short-term rentals and material participation.For the 7-day rule, the IRS requires that:The average guest stay must be seven days or less for the property to qualify as a short-term rental.If the average stay is 30 days or less, you must provide substantial services similar to what hotels offer, such as daily cleaning or concierge services.Regarding material participation, to further classify the income as non-passive, you must meet one of the following criteria:You spend more than 500 hours actively managing the rental in a year.You manage the business yourself and spend at least 100 hours, with your involvement exceeding that of any other person involved in the rental.Please note there are actually 7 ways to qualify, the above two are the most common.

Here we have an example of unspoken assumptions and changes in classifications and/or treatment of classifications.

Pretty much all major components were newly installed / fitted and done to a tasteful standard (new metal roof, plumbing, electrical, kitchen, flooring, bathroom, doors, new hvac, decks, vinyl siding etc) and I have visited and walked through 3 times and even been under crawl space to inspect a repair that was previously noted on an inspection to the foundation after termite treatment which looked to be a good job.

Does the IRS demand consistent tax treatment?

They have secret side deals with the lenders, realtors that pitch and preferential treatment for property.If you want to learn just become a PRO on here I was resistant at first too but I gave in and after I saw all the webinars and info I knew I was in the right place. 

While minor drips or small stains may be considered normal wear and tear, a large and excessive oil stain that requires significant cleaning effort or solvent treatment goes beyond that.

This would qualify the property for long-term capital gains treatment. also, if you command decent rents, it’s going to help you flip that property at a higher price point with solid tenants.I also agree with the sentiment that if you decide to flip it and pay tax that’s a good problem to have because it means you made money on your flip and that’s the goal!