There may be some ways working with your accountant to use this to still create a partial 1031 and have partners end up at the end of the day with the taxable cash or tax deferred property that they wish.  

There are a couple of issues to consider here:The income you received from your tenant is taxable and needs to be filed using Form 1040What was the price you paid for the house vs. what you sold it forHow long did you live in the houseDid you make any capital improvements to the houseGood luck!

It would result in a better answer for tax purposes since you'll have lower taxable income but would investors prefer to have a higher NOI number instead?

If the clock is already ticking you may be forced into the "ok deal" category or just having to realize your taxable gains. 

Your relative should be aware that they have 5 years to pay that loan back or it becomes a taxable distribution.

Hello All,the thing about Marko Rubel which i noticed there , because i watched his webinar twice is that , he is trying to convenience everybody that his business model and strategies of financial solutions are the best through getting the profit by ownership , which is not taxable like as a capital gain , and it is the best model for the real estate growth now compared to the last 5 years of recovery after the 2008 market crash , while the money of wholesaling or flipping are not capital gain are taxable big time compared to that , so those models are not convenient to the current market and it's progression , i wanted to discuss this idea with anybody who might know or think of it , i do not think that is absolutely true , any ideas thanks Ehab T  

The profits of an S-Corp are taxable whether they are distributed or not.  

That is NON-taxable until the option is either exercised or expires. 

Lumping down free cash (appreciation), on a "cash flowing asset", for an extra 6-10K per year of taxable income, doesn't make much sense to me.  

And of course the big issue - It does not change your taxable gain situation.2.