My biggest frustration isn't with the deal failure itself, it's more with the operating performance of the GP and honestly I'm not sure how an LP can really determine this.

They will issue an IRS Form 1099 in January, reporting your total taxable income to you and the IRS.

Capital gains are calculated as:Sale Price - (Original Purchase Price + Capital Improvements + Selling Costs) - depreciation (if applicable) = Capital GainYour mortgage or HELOC balance does not affect this calculation—it only determines how much cash you take home after the sale.In Massachusetts, if the home was your primary residence for at least 2 out of the last 5 years, you may qualify for the Section 121 Exclusion, allowing you to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from federal capital gains tax.

Eg, i have a friend/client who determines it based on income vs PITI.

The manager doesn't determine what they do and don't like, they 'manage' the HOA to comply with the law and guidance from the Board.

I think the IRS might tag this as fraud.Talk to you Title Company.

You may want to pay an appraiser to determine the value at the time of inheritence.

December is the worst month to try to rent the property.Who determined the rent price?

Also, I would look at rental rates to property values to determine if any areas are around the 1% rule.

My thinking immediately turned to researching local rental costs per square foot to determine income potential with triple the current square footage.