Ok, so we are just about to sell our single family w/ legal accessory that we bought less than a year ago, and I'm researching how capital gains is going to work.

Is adding some kind of accessory dwelling an option?

@Jeff TamaruYes, I actually have a client who was looking to buy a small home on a large lot in order to construct/install an accessory dwelling unit (ADU).

@Brook DavenportIt isn't an accessory dwelling unit without a kitchen.

You can check more information out about ADU here:https://dallascityhall.com/dep...On June 27, 2018, City Council approved two different options, each with very specific regulations, that would allow Accessory Dwelling Units (ADUs) to be built and/or rented.

@lenahansonHI Lena, I didnt see you mention in your post if you are approaching this with the city as an ADU (Accessory Dwelling Unit) or not?  

Im gutting a Mid to low income area single fam home with an accessory Apt.

Accessory structure rules, companion unit rules, and other things come into play too.

I believe Minneapolis just passed a very favorable zoning law that allows for more multifamily and Accessory Dwelling Units.

NOTWITHSTANDING SECTION 65901 OR 65906, EVERY LOCAL AGENCY SHALL MINISTERIALLY APPROVE THE CREATION OF AN ACCESSORY DWELLING UNIT IF THE ACCESSORY DWELLING UNIT COMPLIES WITH ALL OF THE FOLLOWING:(A) THE UNIT IS NOT INTENDED FOR SALE SEPARATE FROM THE PRIMARY RESIDENCE AND MAY BE RENTED.