From the contract:[b]At the close:"Seller shall execute and deliver a general waranty deed conveying titile to the property to buyer and showing no additional exemptions or delinquent taxes.""

I understand that if I build a house and use it for my primary residence (even for a short while) then I am exempt from paying capital gains tax when I sell the house.Now, what if I sold the other two lots?

If you use the search function at the top of the page for 50% rule or 50% expenses, you will understand what I'm talking about.I won't buy a property unless I get $100 per unit per month positive cash flow using real world expense numbers (the 50% rule).To get the capital gains exemption, you must live in a property 2 of the past 5 years.One final thought.

They recently raised the homestead exemption but it doesn't much help investors.

If you make too much “profit”, (i.e. too much money left over at the end of the year) for too long, without spending it, the IRS can take away the non profit tax exempt status.I am not explaining this very well...

Depending on your specific state laws....there probably isn't an 'exemption' for you rproperty.

That's your UBIT.Then, in a fit of "except - except", items that are otherwise exempt become taxable if they result from debt financing.None of that is to say you shouldn't own property in your IRA, or get a non-recourse loan to do it.

Your state, like mine, allows up to five sales per year to be exempt from the South Carolina Mortgage Lending Act but it sounds like your plan is to ensure compliance and become a registered lending institution.

They each have an equity piece as well, but they also have some voting rights which gets me around the requirements for Reg D and the exemption.

The house has been used as a rental for a long time and when I asked about disclosures they said they didn't have them because it was a rental....huh....not exemptable.