10% penalty plus income tax at ordinary rate.

I did call the MUD office and they assured me that the water bill for the house was stable and very ordinary in price.I might add that my final price was 56% of a house that sold a few weeks later directly across the street. 50 sq ft larger and, of course, in much, much nicer condition.

Memo. 2010-64, the taxpayer moved into the new property after only two (2) months.

Your contract determines tax payment laws but each state could do that differently. 

This is a general guideline.Your responsibility is to heavily document the condition before occupancy and then determine if the wear-and-tear  is "ordinary" or not after they vacate.

Here is FTB's definition of "doing business":https://www.ftb.ca.gov/businesses/Section_23101.sh...If the "tax payer" they refer to is the LLC and the LLC is only conducting business and owning property outside of CA, I don't see how it matters where the member(s) or the manager(s) of that LLC lives.Think about it like this. 

So if you look at the taxpayer database in Houston, where property values have been soaring the last few years, you will see the "market value" and the "appraised value."

I’m thinking the 6 month waiting period can give taxpayer time to redeem if my goal is to increase the redemption fees via pres. improvements Or waiting 6 months to make an improvement might allow/cause damage to fester. 

So unless the land is what we used to call a "tax payer", i.e. being held as a speculation for a large increase in value, I don't see this deal as being very good.Income from the rental of developed spaces is preferable to income from renting spaces and homes, for the following reasons1.

Perhaps the assessments were outstanding and should have been paid (were owed) by the seller in the ordinary course of owning property subject to the HOA bylaws.