The IRS could apply this doctrine if it appears that the series of transactions are structured primarily to achieve a specific tax outcome, such as avoiding taxes.Regarding the 1031 exchange, while in-laws are not considered related parties, the transaction could still be scrutinized due to the complexity and nature of the other transactions involved.

This would allow you to indefinitely defer all of the tax if you sold, and use the tax you would have had to pay, to purchase something nicer in an area with a greater growth potential.   

I'll see if they have a program for this deal and I'll follow up with you. 

Property tax for this rental is about $2200 per year, and I am wondering if I can use $4400 as my expense considering I paid both in 2024. 

That way, you know that they at least speak your language since they're a premier agent on this platform.

This could be due to a variety of factors, including market conditions and changes in demand.

As you mentioned intentional flips are typically considered inventory-This means the income is ordinary income and as such: - Is not a capital gain, so hold time of 1 year does not change to a better long-term capital gain rate - Can not be invested in a QOF Deductions related to it can't be pushed or changed- all costs are accounted for with the inventory component 

There is a wealth of knowledge on this site and I hope you enjoy it.

This past year they have started paying rent late to the point where the total accumulated time is about 3 months of back rent due.

What drove you to do this project?