If the seller has dementia or is declared "incompetent" the agreement can wind up in court.

As you said, if you can show that it was sold at fair market value, then you should be able to defend yourself in an audit (should there be one, and probably if you are declaring a huge loss). 

To me, it set a precedent that the government can declare any emergency it wants and therefore what else can be deemed "understandable and necessary"? 

She’s the brains in finding deals and I’m the muscle that flips the place.

If they can't make their mortgage payment now how will they pay this big bill coming.The only reason the economy and the stock market is staying afloat is because of the trillions of dollars the fed has infused.Not to mention we have a presidential election coming up in which both sides have already declared that they will not accept the results.Throw in evition moratorium, less office space needed, jobs not coming back, Covid uncertainty, and the the eventual end to the free money handouts and you have the potential of a major disruption.

I also read that I may be able to declare a hardship because of the job relocation and the capital gains tax can be prorated.  

2 - It's common to ask, but only a rookie buyer would ever give a large D.P....and it isn't a down payment...it's an Option Consideration, which is 100% of the cost of the Option to Buy Contract...which is separate from the lease agreement,...which is different (and also separate) from the Purchase Agreement.3 - If you do this wrong, you can have the agreement(s) declared a Land Contract, and the Option Consideration as well as all of the lease payments could/would get credited to the purchase.4 - Do this right, and this could/should be one of the best ways to buy (actually, control...which is much better) a property. 

I left them all and have been working in the Cleveland markets for about 10 years, I recall buying one in Detroit about 11 years ago, total disaster, we just walked away, I am sure you can be successful there, however, you better have a SUPER team in place.All the best   A lot has changed in Detroit in 11 years. 11 years ago, the city hadn't even declared bankruptcy. 2013 was the burnt ashes and the phoenix is still rising.

Like other investors of which I use IRA's for my PLing , there is a prom note and mortgage declaring her % per annum and when the house sells it rolls back into her account Does this conflict since we are married and my LLC makes a profit?

Not for me.A lot of folks go to college with only general ideas of what they like, and part of the way through they declare their majors, most likely because they liked a set of classes more than some other set of classes.