Thus, the grantor/individual would pay the total tax liability upon the filing of his return for that taxable year.””

Exactly, if you object to the taxable value they will make you use YOUR closing statement as evidence of the value since it would be considered an arms length transaction. 

But the IRS goes further and says that any money you take out in a 1031 is first going to be profit and taxable. 

Each payment you receive the installment sale has three components:1) return of your basis, 35k ( not taxable) 2) your gain 45k-35k -selling cost (Taxable as LTCG)3) interest specified in your contract( taxable at ordinary rate)  

Ask your attorney if you can deduct any of the taxes you paid on that property and/or take a loss against taxable income for the personal possessions.Again, I'm not a proponent of AP.

Someone who makes $250k taxable income in CA pays $25k in income tax, in WA they pay ZERO.

I plan on having that just from my 401k, and a whole lot more than that in taxable income.

I really like your model.. top producing agent for taxable income so you can qualify for homes..

If you make more than $100,000/year in taxable income, it puts you in the progressive tax bracket of 32%.  

Me doing a mortgage for someone with $0.00 in taxable income should tell you that Fannie/Freddie mortgages are not based on taxable AGI, that's just the lazy way to say "no" to borrowers who require actual attention to detail and work to close their loan.