We haven't applied yet...we want to tour the building first, but just want to get ideas. 

California now has a pretty onerous brightline test of sorts after the Dynamex case last year in the CA supreme court.A hired worker will be considered to be an employee unless it can be shown the worker passes ALL of the following test:1) The worker is free from the directions and control of the hirer in connection with the performance of the work, both under the contract for the work and in fact;2) The worker performs work that is outside the usual course of the hiring entity's business; and 3) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the worked performed for the hiring entity.Note this is a lot more restrictive than the federal "questionnaire" for an employee vs IC determination. 

Own a property management company and property owner moving out of state so I offered to purchase...was able to broker the deal and apply the commission toward the down payment.

Now the question is since the income bracket is at the 12% normally you would be in the 0% capital gains bracket but it also states that this does not apply to real estate so what % tax would be charged on this capital gains?

If I was to bid on the house, does the amount I bid automatically get applied to the IRS lien first because it’s the primary lien, or would I be applying those funds to the outstanding mortgage, and then be responsible for the full IRS lien?

Remove the kitchen asap before you have a problem or apply to get it permitted.Until it is permitted do not let anyone use the kitchen, close off the room.

I'm also thinking of renting out half my house and hence the mortgage interest (half of it anyway) could be applied to the E vs the A and I might still be better off by then qualifying for the std. deduction.

Contact your local building inspector to apply for a building permit and your insurance company to inform them of the specifics.

In the last few MeetUps, I have had speakers express that there is no market for applying the wholesale strategy in Montreal specifically.

Both loans are with Wells Fargo, the second was a modified loan, the seller had applied for the Home Affordability Act.