Any amount over your adjusted basis in the property (initial cost minus depreciation) could be subject to capital gains tax unless you reinvest it strategically.2. 1033 Exchange (Involuntary Conversion): A 1033 exchange (involuntary conversion) is specifically designed for situations like fire, natural disasters, or eminent domain.

Does the time and effort behind designing, permitting, and building the ADU count towards the REP status?

I absolutely love real estate and interior design.

Would you mind sharing your professional opinion on which of these kitchen designs would sell better?

The $20,000 would be for a pre-designed building footprint. 

DP policies, or Dwelling Property policies, are insurance policies designed for residential properties that are not owner-occupied, such as rental properties or vacation homes.

S corp is a separate tax designation similar to a partnership in that there is no entity level tax but has some other nuances. 

One of the areas we see investors needing the most design help in is bathrooms.

I'll work with an attorney to assist with drafting that.Q2: Yes, I'll talk to my CPA but we'll most likely hold the property for at least 1 year under the LLC given our timeline to design, permit, build and sell the property, meaning I should avoid short-term capital gains.  

As well, does interior design qualify as a real estate business?