Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

Many months of costly vacancy, local market rent & resale deteriation, special assessments, property taxes and maintanance fees suggest a quick sale would have been the wise thing to do 2 years ago.

At least, if you don't want issues down the road tax wise and if the government finds out it could cause some serious legal issues.

I have over a hundred rental units I own and operate in Utah everything from homes and condos to larger multifamily.Salt Lake County has higher property taxes and is basically built out already and Ogden even though you can find good opportunities in the long run it won't be able to compete with South Utah County or Eagle Mountain. 

My CPA isn't well versed in 1031 exchanges and I want to know the effect of transferring title back to our names from a tax perspective. 

Thanks for readingDavid $250,000 tax-free?

Especially if your son could then try to sell his primwry with the ADU under the sec 121 tax exemption I wonder if he could sell you the land?

Of course to maximize your tax benefit it needs to be sustainable over time. 

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too