I have a few buyers who would hop on this home if the price was right and since it is VA, being military, I can consider assuming as well but then again, if numbers worked out.

[But sure, not including appreciation].I'm guessing he'd be penalized by the IRS if he sells to you for less than market?

But in general where you'll get heartburn from the IRS is if you refi immediately before a 1031 starts. 

You would have to consider the depreciation recapture tax for the year you rented it (and remember, the IRS doesn't care if you actually take the depreciation deduction, they only care if you could have taken it, so always always take it, they'll come for the recapture tax regardless).

Hoping someone may have a technical or customer service number I can try and then next hope is someone I reach can help me get the issue resolved so I can hop on tonight and get started.Fingers crossed.

Schedule E has information provided to IRS.

Unfortunately the IRS started cracking down on such transactions. 

@Lee A.If you decide to go the self-directed IRA route you must remember that according to the IRS rules you are considered "disqualified person" to your IRA and as such would not be allowed to do any work on the property personally.

I’ve lost a few partners to border hopping.

Hop on the phone and start asking questions