After the Oct 15 deadline, when I have more time, I will double-check my preliminary conclusion and, if confirmed, will reach out to the IRS counsels to fight their dangerous error.For my fellow tax pros: let me know if you're interested in this fight.

A floating neutral is a dangerous situation .

Danger Will Robinson.

They said “no, it’s too dangerous to list and we want rid of it, either you buy it today or we’re giving it to the neighbor for $1”.

I think this illusion is very dangerous because, in fact, it isn't the way it works.

Finally, we decided to get a second opinion, who told us that the first company completely ruined the system and left it in a dangerous state.

That's the danger of being over leveraged.

Unsold inventory sits at a dangerously low 3.0-month supply at the current sales pace, down from 3.1 months in July and down from the 4.0-month figure recorded in August 2019.

Ignoring the internal revenue code, the judge-made-law substance-over-form doctrine and sham-transaction doctrine might also stand in your way.But FWIW, you'll only have to "logic" your way out of it if you're examined or audited. 

I think you are playing in a dangerous situation if you go the hard money route.I also want to help give you realistic expectations.