I have always claimed my rental money with the IRS to keep things honest.

You can stick to the mainstream and go after the same people your competition is (which is totally fine), but you can also build an advantage by figuring out how to capture the fringes that others ignore.I'm not claiming that you *should* do this or that any of this is relevant to your situation since I don't know anything about you, but wanted to at least share the perspective behind how we think about it.

I he or she going to charge the "full amount" to file a new LLC that probably just has some filing fees to claim?

Out of five years, you can live for one year, rent for next year, again live for one year and rent for 2 more years.Your primary residence will qualify for $250k ( $500k if Married) gain exclusion if all following requirements are met: You owned a home and used it as your main home during at least 2 of the last 5 years before the date of the sale.You did not claim any exclusion during the last 2 years.You did not acquire the house with Like-Kind exchange during the last five yea 

I'd say the reason that the cash payments aren't on the seller's returns is likely obvious . . . they didn't claim them OR didn't receive them.  

The only policy my guy could find is a severe repetitive policy being that there has been a claim on the property because of flooding.

The one is from the Landlord wanting to collect Damages in Small Claims Court from people who quit their JOB's as soon as the Judge awards you Damages, like on Judge Judy...try to get Blood from a Stone.

You are moving the time line forward, not claiming anything you wouldn't otherwise be able to claim.Makes perfect sense due to shifting into a high income year.

Anyone can claim big stats when they’ve paid off the property before they even started.

I've also asked about making use of the existing well/septic, although I anticipate on simply replacing same with the new construction.Our counties aren't very modern -- while tax info is available online, I still have to go to the courthouse to research any other liens/judgements against the current owner to see if there are hidden claims to the property.