Note: this year there was a change in regards to evidence of termites and treatment so if at all possible you will want get proof of treatment from the current owner and give it to the inspector before the inspection.

Also the treatments on passive loss limitations can differ to dependent on material involvement 

The interest will need to be traced to accurately determine tax treatment. 

That gain will likely push into the highest tax bracket and a large increase there and/or less favorable capital gains treatment could be a big stinger.5.

I don't think the US could successfully impose quarantines like China so transmission will be more widespread unless treatment is aggressive/effective. 

You can invest more than the capital gain realized if you wish, but the interest will be bifurcated solely for 1400Z-2 purposes and only the interest stemming from the qualifying investment will be eligible for the OZ tax benefits.All capital gain: LT cap gains, ST cap gains, 1250 gain, and collectibles gain are eligible for qualified treatment under 1400Z-2.If you are thinking about a QOF investment, I'd advise you to onboard a competent tax professional as an external partner on your team. 

That would be the simple answer.But since you are in CA, you get special treatment and the complicated route - you might want to look into the Delaware Statutory Trust (DST) to save on the outrageous $800 annual fee. 

So what's your plan for qualifying for treatment of the CapGain forgiveness?

Hi @AP Horvath, The relinquished property and the replacement properties would have to be held for rental, investment or business use in order to qualify for 1031 Exchange treatment. 

I'm simply asking for feedback about this form of termite treatment.