I'd stick to the main issue, the removal cost of the reconstructed area and you'll need to show and have receipts for any costs or labor paid to someone that removes the stuff and to repaint ect to restore to original.

Demolition and then make it a residential or will you spend too much reconstructing the property and just buy residential right away?

My client who is a surgeon sold his 1.2M home in Hawaii facing the Pacific Ocean came to mainland(CA), he missed out on his home biddings twice.

You don't see many orthopedic surgeons running direct mail campaigns, bidding on properties at the courthouse steps, fostering broker relationships, walking and vetting B and C class apartment communities, supervising flips and rehab, etc. 

The date of acquisition means the date on which an individual enters into a binding contract to acquire the principal residence or on which construction or reconstruction of such a principal residence commences.Yes you could transfer the former employer 401k to a Traditional IRA and then process the distribution from there.

Also, it costs almost nothing to implement; especially relative to the reconstruction of the existing HVAC system in the property!

But a number of the guys that originally built a lot of those homes are coming out of retirement and bringing their old design work back to life to reconstruct some of their old subdivisions and neighbors are banding together to try to get some economy of scale.  

Perhaps a few more details will help further. my wife finally completed her 15+ years of medical training and is a trauma surgeon making Really big girl money.

I'm almost done with the tear out and some of the reconstruction has been started but my question is since it was a cash purchase and liens and taxes have been paid along with expenses such as trash containment, permits, ect... can I deduct that from my taxes. ( I currently have my primary house, 1 rental, and now this property.

Look around and you will see the average joe is NOT getting six pack;meanwhile six pack book writers, gyms ,pod-casters,personal trainers, supplement sellers, workout equipment sellers,nutritionist,plastic surgeons etc are getting rich.