Many tax laws are open to interpretation and even an incorrect application abuse of the law is probably not getting anyone thrown in jail especially when they will eventually pay their taxes on the money. 

However, the City took a very strict interpretation of the code and ruled that the permits obtained by the prior owner (the seller) were expired.

This is also why two parties go to court or arbitration, they differ in their interpretation of typically very clear language in the contract and one or the other doesn’t want to honor it.

Many different ways to interpret things from a scriptural lens. 

Which makes any transaction involving the continuation of his loans, or any transaction that can be interpreted by the courts as anything other than arms length transaction, subject to Dodd - Frank Act and the Consumer Finance Protection Bureau.3.

It's heavily dependent on what the tax code allows and who is interpreting the tax code.

I never got the impression your remarks in this thread were ever intended to mislead or convince real estate investors they can reach 100% anonymity but you know as well as me that many who review these forums interpret everything they read as indisputable fact and I was merely clarifying that one section of your post which could trip some folks up. 

However, it’s always best to check directly with your insurance company or consult with a public adjuster, they can help interpret the fine print and ensure you're not missing out on any potential coverage. 

And interestingly, the law for CD in Texas has been interpreted by the courts to include commercial as well as residential real estate transactions.  

This may or may not apply, but there is a concept in the law that says if a contract is unclear that is should be interpreted in favor of the party that did not draft/initiate it.