Is there a step up in basis for the husbands half of ownership, will there be a $250,000 or $500,000 homestead deduction, and are there other mechanisms in play that I may not be aware of?

Im interested in knowing the process on possibly converting existing garage/mechanic shop space into restaurant space.

It is the equivalent of crashing your car then trying to buy insurance to fix the car after the fact.A home warranty or homeowners insurance policy will not pay for mold because mold is a maintenance issue.You didn't say what is wrong with the garage - if it's a broken door opener that is typically covered on a home warranty.My experience is mixed with home warranties and I can 100% tell you your satisfaction comes down to the local trade person that shows up.The home warranty company does not employ trades - they contract them locally at a fixed rate for the work performed sort of like how car mechanics are paid. 

When it comes time to negotiate, the buyer will have his/her opinion on the matter so I’ll be somewhat dependent there, but it’s good to know the tax “mechanics” won’t be an issue and have a few reasonable options.Quote from @Michael Plaks: @Matthew HeffernanTax question first, because it's very easy.

@Tom Gimer since I know you have a background in law, and Account Closed since I know you have defended a creative transaction of yours in court...To me this discussion of Morby method only sounds ok from the perspective of 'mechanics of a transaction'.

The title company did a search and found out the sellers haven't passed a electrical and mechanical inspections and owed money to the county for delays.

Purchasing a fix and flip from a seller that had prior issues with GC and is concerned that GC may file a mechanic's lien on the property even after the property is sold to me.

I agree with @Anthony Rosa @Mindy Jensen, I would put the autoclose mechanism on the door as a start and autolocks too. 

The objective:  Prevent the contractor from putting a mechanics lien on the home.3.

After mortgage and mechanic lien(which was inflated)I cleared 230k on that sale but i had 7 other loans with liens on most of them.