Not a huge deal, but it's extra paperwork.Just in case you're thinking of breaking it up into smaller transactions to avoid the paperwork, you should know that that's a federal crime called "structuring", so unless you want your cash seized under the civil forfeiture laws, don't do it.Western Union used to allow agents to print out checks in lieu of paying out cash, but as far as I know, that ended about 5 years ago. 

For government loans, this is typically lower however, you would have to pay a premium up front and carry the insurance for life.

We also have a Full time job, say making 100k each before tax, each liable for 33% tax on both state and federal combined.So my question is, on that capital gain of 10k, how much tax do we pay?

Seems they never considered they were also breaking federal law

While it may seem asinine to you, the process has to be consistent throughout the portfolio and, the process is both regulated and enforced by both state and federal regulators....AKA the government.

new paint, upgrade bathroom vanities, upgrade laundry room, fix this, fix that, etc...the sale price is going to govern our budget for our next house. 

The net income is subject to federal and state taxes at your ordinary, marginal rate. 

It is most likely a government insured loan you are applying for.

Such a pain and it’s not like the government will come in down the line and pave sidewalks at this property. 

@Etan Frankel although the government has a hard deadline of April 20th, 2018 to establish designated opportunity zones nation-wide, the investments wont happen for a short period afterwards while the IRS works on designating qualifications for the certification of an Opportunity Zone Fund.As soon as the certifications have been designated and the flood gates for applications are opened, i am sure you will begin to see many Opportunity Fund's pop up that would be eager to participate in the investment.