Otherwise you need to fill out form 3115 which is above most taxpayer's heads.

The problem with California's current income tax withholding law is that the calculation of the mandatory withholding requirement of 3 1/3% is based on the taxpayer's gross sales price and bears absolutely no relationship to the taxpayer's actual capital gain income tax liability.

I ask this as a hypothetical assuming ejectment letters and actions have not been completed for lack of response from taxpayer.

This is a very common situation for many tax payers.

  (1) Original intent and (2) all the taxpayer's facts and circumstances. 

Because you file jointly the IRS sees you and your husband both as the tax payer for that property.  1031 does not allow you to sell and buy from yourself.2.

You might want to elect to save passive losses for the future when your AGI is higher and in higher tax brackets.I am not sure if I agree with this.There is a difference between AGI and Taxable income in that you normally are eligible to deduct items such as itemized deductions/standard deduction/QBI deduction.However, a single taxpayer making around $300,000 in taxable income is at the 35% tax bracketA joint filer around $300,000 in taxable income is taxed at 24%35% is not far off from the highest tax rate of 37%Furthermore, you are not only just saying 35% or 24% in taxes if you live in a state that recognizes REP status.

Proceeds from the sale were put into reserves and subsequently mostly spent on needed concrete parking lot replacement work, and we haven't budgeted for the tax payment we're being asked to pay. 

In Canada we cannot defer our tax payments like in the USA (which is what a 1041 exchange does).  

I have seen a court case where a taxpayer was denied the deduction because a bookcase filled with pleasure reading books was in the room.Another glitch with rental property is whether it qualifies as a "business" since it is per se passive.