It's a pretty sweet deal and most people recognize that. 

Doubtful They may have questioned if it was a mistake, but if they still own the property, they recognize it was a smart decision/investment.

The IRS's long-standing administrative practice is to recognize amended returns that correct clear errors or plain mistakes on originally filed tax returns (Klinghamer v.

Thanks,  The state of PA does not recognize that a 1031 exchange defers capital gains tax, so you will be paying PA income tax on the gains if you do a 1031 exchange.

I work in partnership with an internationally recognized Architect also based in Toronto who previously lived in San-Francisco and is registered in-state and previously worked for SOM before doing her post graduate in Architecture at Harvard.

Here is my suggestions (since thats obviously what you are trolling for)1) Read my last post2) Recognize that you ARE the number #1 Scenario.

That will surely change as more and more people recognize the value of an ADU/mother-in-law suite. 

As a secondary issue, I assume that you are taking enough money out of the company to have a reasonable lifestyle; what's preventing your lender from recognizing this income?  

While I recognize the housing market can be like a roller coaster, I expect to hold onto it for ten to forty years - whatever makes sense. 

Recognize San Diego rents are higher than most  (virtually all) markets).