My lack of understanding involves the "applicable exclusion amount for gifts" from the above article, and maybe we're misunderstanding the annual gift exclusion as well. 

It sounds like you need a stronger lease agreement that spells everything out in clear terms, so that there's no misunderstandings later.

Please do not misunderstand my comment, I never made a comment about having a higher ethical code because of my religion.

I know of the 9 or so things you can qualify for tapping your retirement accounts for penalty-free, the first-time home buyer exemption is one of the areas taxpayers misunderstand/screw-up...so any help would be greatly appreciated.  

Tenant will prove dirty apartment at move in with pictures ,call the tenant apologize for the misunderstanding, return the money and move on; Tenant  will most likely win in court and you will most likely pay deposit plus penalties x3, plus your lawyer's inflated fees good luck

This includes misunderstandings of how the state's hierarchy of license works.  

For your protection and to avoid any misunderstandings, please provide me with a written proposal to review - as soon as possible."  

Thanks for the shout out @Justin WindhamMy two cents:I agree with @Patrick Desjardins but maybe I'm misunderstanding the nature of the relationship.

@Sam Bagwell I did more research and realized I had a misunderstand of the law, which I have now cleared up. 

I am curious about the part that says "repurchase the loan....from your SDIRA for $100"Perhaps I am misunderstanding?