and even if you're in a land contract and have not taken title it is likely that enough of the burdens and benefits of ownership have passed so that the IRS will interpret that you already own the property even though you're not on title yet.  2.

It is possible your landlord either interprets the law differently or is unaware of the requirement.

You may get different interpretations from accountants on this.

This is a pretty grey area in Ohio has it is illegal but definition but the definition on wholesaling and be interpreted differently and there are certain things you can do to get around it. 

@Patti Robertson I found this information on this source. https://www.wric.com/news/poli...Let me know if I am interpreting it wrong but it looks like the moratorium is extended in VA. 

Before 2018, I think you could deduct the first $100K cashed out in a refinance no matter what but apparently that's not the case since 2018 (except for some complex grandfathering rules...)That was my interpretation. 

I find a lot of people just assume that since they inherently trust their friend/family member, a lot of the "what ifs" and worst-case scenarios are not hammered out in fine detail which can lead to confusion and personal interpretation after the deal is closed, which it should have been addressed pre-emptively before the money was lent out.

The appreciation is due to my interpretation of comps (homes that have sold in our neighborhood and area).

There is a lot of interpretation on things that need work. 

Most courts employ what is called the "plain meaning" rule when interpreting a contract or similar legal document.