You just defer, not totally avoid (can avoid 15% if held for 7 yrs).2) To completely avoid the capital gain on the investment made in the OZ if held for 10 years.  

-How much are the 18 homes worth in total? 

Think of all the damage an occupant can do vs. one that is getting paid a fair price to pack and leave quietly.

But what Dave doesn’t realize, likely because Dave didn’t consult with a real estate savvy accountant, is that Dave has to repay the total depreciation taken at a 25% rate.

3)Was your bid to vacate the street successful and what was the total cost of that process?

Makes total sense to wait until I have something lined up with regards to a deal. 

They said last year they brought in 5500 per month total.

Probably your cost would be around 750-900 for the first one and 400-500 for the second one totaling 1100-1400 for total transaction. 

Here is my current understanding on 2a - how to calculate the depreciatin of replacement properties.Realized gain for R = capital gain + depreciation = 168K.The total basis for property A & B are (225K+150K) + purchase cost let's say 8K - realized gain for R = 215KThe basis is splite proportionally between A & B - So A is 60% at 129K and B is at 86KWhat I am not clear now is how is the land value deducted from the basis - percentage (of land to purchase price) based or absolute land value based.   

Right now my husband and I have about 12 units total.