But I’d’ also ask if the girlfriend is a legal US citizen?

I thought about this when I was getting all my documents together for this years taxes.Impact cost basis, how may I ask? 

This may also create some competition for the space and urgency to get the documents back to you.

The standard rule is $250k per person who legally owns/occupies for the 2/5 year requirement. 

Supposedly, after signing participation agreement (I haven’t seen the documents yet), you can pay it off next day and essentially just pay 100% of the first mortgage acquisition price.

Promissory notes are transferred by endorsing the back or a document called an allonge.

The Yale Law Journal article, "Zoned Out: How Zoning Law Undermines Family Law’s Functional Turn," highlights this issue, noting that while family law has evolved to recognize diverse family structures, zoning laws have lagged behind, potentially hindering innovative housing solutions like co-living.Challenges for Co-Living InvestorsFor real estate investors interested in co-living, these restrictive definitions can lead to:Legal Barriers: Difficulty obtaining permits or approvals for co-living spaces due to non-compliance with traditional family definitions in zoning codes.Operational Challenges: Potential fines or legal disputes arising from housing arrangements that don't conform to local zoning definitions of a household.Market Limitations: Reduced ability to meet the growing demand for affordable, shared housing solutions.Advocacy for ReformThe Bloomberg article, "Why Are Zoning Laws Defining What Constitutes a Family?"

All our data was well-organized and cleanly presented (no dropping off boxes of unorganized documents in their lap).  

All work done to raise value after TOD is not legally in that stepped up basis.  

I often hear, "Oh, I didn’t know" or "Oh, I forgot about that," followed by reluctance to go through the effort of gathering the necessary documentation.