There are several industry groups that are trying very hard to have exclusions written to apply to manufactured housing.  

I leveraged Hornet Capital who lend exclusively to Veterans as my hard money lender.

Hi @Julian Cooke, Hi @Erica WilsonI am an agent in Philadelphia and I work exclusively with first time home buyers and first time investors.

Another issue with gifting property is that any amount over $14,000 (the annual exclusion) will reduce the parent's lifetime exclusion amount currently at $5.43MM and indexed for inflation.

I should really know more about this (and I don't), but are you referencing the IRS main home/residence tax exclusion (on your gains up to $250,000)?

The portion that is considered your primary residence would be eligible for a 121 exclusion.  

What are the options or exclusions Jaime is fighting to make happen?

Make sure you have the right to sublease and have a notarized, recordable exclusive option to purchase for at least 36 months. 

Everyone has to live somewhere, my guess is your best solution is to keep the townhouse another year at least and then consider selling with your 121 exclusion.

Wade,Without much more information I cannot tell you exactly; You can calculate exactly how much you will be able to deduct based upon the link I provided below, the IRS publication 523 Pages 33-35 will allow you to calculate your basis, exclusion and gain, You will actually be reporting the transaction via the Form 4684.