Your post describes a MIS-interpretation of tax returns, and you can continue to point your finger at the "industry" - despite clear evidence that some people in your industry doing it differently (and doing it correctly). 

Also, development can be interpreted a couple of different ways.

That is how I interpreted it ? 

. :-) Because the answer depends on the interpretation of the law.

Not having any functioning showers, toilets, kitchen sink, etc could easily be interpreted as not being habitable.

Again, this is my interpretation of the law and it may or may not apply to your situation.

Michelle L , nicely put that is the way I should have interpreted it.

Originally (prior to me doing any wholesale transactions) they said they would only do double closings due to the interpretation of both parties needing to pay the transfer tax.

If there's one thing I've learned is that if you dwell on the narrow interpretations of state and federal law, which often contradict each other, you'll never make any money.

Nobody buys anything in %, the do in "actual" dollars.Also, the % rules come from the "paper" market (interpret that as you want), and shouldn't be brought into the REI world.