Yes, you will have to file the partnership tax return.

When I did my first house hack in Columbus I showed very low income on taxes. 

Mostly because the tax incentives are *insanely* good. 

However, there is no specific holding period contained in the tax code or regulations and there is no "safe harbor." 

I 100% endorse adding in the escrows for taxes and insurance to set the buyer/borrower up for success. 

To defer all tax you must purchase in total at least as much as your net sale.

I do intend to stay close to home - but home provides only annual opportunities and I’m looking for year round possibilities with tax deed properties. 

So if you have the property for a total of 10 years, moved in at year 8, little value or tax advantage.

.- Property Transfer Tax (Grunderwerbsteuer): 3.5-6.5%, depending on the region- Land Registration Fees: Approximately 0.5-1.5%.- Realtor Fees: As mentioned, these range from 3-7% of the purchase price, plus VAT.Benefits for Service Members- Equity Building: Owning property builds equity over time, providing long-term financial security.- Strong Rental Potential: If reassigned, you can rent the property out in Germany high-demand rental market.- Tax Advantages: Germany offers tax deductions for property owners, which can help offset some costs.Key TakeawaysService members have a unique opportunity to buy property in Germany with minimal upfront costs.

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.