The appraisal district shortly thereafter corrected the tax allotment “anomaly” between the two lots, but the investor never made a tax payment and eventually lost the lot to a tax foreclosure.  

Since heis a “Cash” taxpayer and not accrual.

Each individual owner can have their own Deferred Sales Trust™, the assets of which can be managed to each taxpayer’s own individual risk tolerance and preferences.9) Net rental income.

I was unaware of the tax-paying requirement you mentioned for adverse possession.

This is due to bonus depreciation which allows taxpayers to deduct 100% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

It is a lot of money, but taxpayers also pay a lot in taxes and there should be some money for these types of things. 

The system is what's really broken:1) S8 should have a time limit - get free housing to get your life in order and move on.2) S8 should have strong requirements for taking care of the home taxpayers are paying the rent for. --- We haven't seen a S8 inspection report in over a decade that required a tenant to fix damages they obviously caused.

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

@ Dmitriy FomichenkoAt what point did the conversion and tax payment occur? 

He mocks people with disabilities, and is sarcastic about taxpayers.