So when you say the seller sold the condo on a 30 year lease option, you're combining apples and oranges.I have no clue how that paperwork looks between the condo seller and the college kid, but based on what you said, I'm guessing there is a huge amount of equitable interest granted within the agreement, Dodd Frank Compliance issues, and sounds like it may meet the criteria for the IRS to classify this as a "disguised sale."

Btw just hopping on TurnkeyReviews...looks like a really good resource.

In this new landscape simply holding for more than a year does not automatically give you capital gains treatment if the IRS determines that you purchased the property as inventory (primarily for resale).   

However, if it is an IRS lien, or state tax lien then do the foreclosure, and wait out the statute of limitations on their right of redemption.

I miss being able to hop in my car and hit the Appalachian Trail, or Lehigh Game Preserve.

Members can find what they are looking for, check out each product, look at the brand, and decide what to buy.If they believe that they are not entitled to LTCG treatment on the sale of a rent house they owned for two years because when they bought it, their intention was to re-sell it, but they rented it instead, then they should not report the sale as a LTCG transaction, and they should not try to do a Section 1031 Exchange.But as a former IRS Tax Examiner and a current Tax and Real Estate Attorney going on 33 years, and licensed in three states and the District of Columbia, I am not aware of single sentence in the Internal Revenue Code, the Treasury Regulations, Private Letter Rulings, U.S.

AND I am the one being bombarded by phone calls from the lease option marketing - not you.And this is done all at no cost to you, because the buyer pays me for the right to assign to them... you don't pay me a penny.I've also heard stories of sellers who accidentally violated Dodd Frank through how they structured their lease option, or accidentally conveyed equitable interest and got in trouble with the IRS for creating a "disguised sale" through rental credits and such... and since I've got a lot of knowledge in this arena, I can guide you away from making accidental mistakes.Again, all at no cost to you.So do you really want to run the risk of performing "open heart surgery" on yourself?

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andThe Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC or Checkbook IRA) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

The rule the IRS uses for what’s allowed in self-directed accounts is whether or not you put any money at risk.

does the IRS regard it the same as a conventional fourplex concerning primary residence?