2) The costs above should be split per the breakdown you provided (50/50) as it relates to the property in its entirety. 

I certainly don't know for sure, but it's possible the H&W either took title as tenants in common or they got divorced which reduced their entireties interest to tenants in common. 

I encourage you to look at crime statistics for the entirety of the city......With that being said a ton of my colleagues do flips, buy and holds, new builds, etc.. in Pueblo West.

Some lenders may call the loan (meaning ask you to pay the entirety back).

But whatever, you can claim what you want.And I did read your entire post and I'm commenting to the entirety of it. 

For example, if I were to stop renting out a portion of the home, and live in the entire home for the year before sale, would that allow the entirety of the profits to fall under the 250k tax free limit?

You can also sell a piece of equity in the property rather than the entirety of it.

So can I deduct the entirety of my payment from the 1045 that the buyer is paying me?

@Dave Foster you are a genius at this I can seeI have a similar issue, so a followup to your answer: what if I don't own the entirety of the LLC that owns the 1031 exchange parcel property and is going to have the improvements?

I've probably only listened to a handful of episodes in their entirety.