The last thing Cannon Falls tax payers need is another building sitting empty or a lawsuit that even a member of our city council agrees would be justified in this circumstance.293 signatures are still needed!

Says some people can claim 2 but receive a reduced exclusion....A TAXPAYER CAN GENERALLY CLAIM ONLY ONE exclusion every two years.

The cost basis minus the conveyance amount establishes the tax due; in general the tax due changes based on the tax payers individual situation (her tax bracket).  

W2 tax payers on the other hand  pay taxes on ALL their W2 income before they even get their paycheck.Randy 

The taxpayer doing the exchange would just need to follow the reinvestment rules for the purchase of their particular TIC interest.

How does this work exactly...Passive activity losses (PALs) generally are deductible only (1) against income from passive activities, (2) when the entire interest in a passive activity is disposed of in a taxable transaction, or (3) under the $25,000 rental loss privilege for qualified rental activities (subject to the $100,000 AGI phase-out and is lost completely at 150k) The general is a rule allowing up to $25,000 of active participation(see below) rental real estate losses as a deduction against nonpassive income.The taxpayer must make management decisions with regard to the property, have at least a 10% ownership share in the property, and the cannot be a limited partner.

If you have multiple tax payments due and not enough money to pay all of them, it's hard to tell which ones are more important to pay.

If you were to buy it now with the expectation that you'll be "gone" before she gets out, who will be responsible for making the mortgage payments, property tax payments, maintaining the yard, and making any repairs that are needed (i.e. water leak, window gets broken, someone breaks in, etc)?  

The thread in the below link discussed this topic quite extensively:https://www.biggerpockets.com/forums/580/topics/839134-pennsylvania-inheritance-tax-payment-for-a-sheriff-sale-property

The roughly 1.4 million U.S. taxpayers that comprise the top 1% generate an average annual income of around $1.7 million.