In your case, since you reduced the reported amount on the 1099-S to reflect the actual amount you received after the payment to the program, you might want to have the documentation from the county's request readily available.While it's not mandatory to submit the documentation with your tax return, having it on hand can be helpful in case of an audit or if the IRS requests additional information.

What innovative strategies are real estate professionals using to minimize capital gains tax on property sales?

So the gain is spread around. 

in my opinion, unless you purchase 1000 unit, these kind of analysis is only giving additional stress.

One way or another, you will want to sell within 3 years after moving out so you do not lose the tax free gain on sale (up to 250k tax free gains for single and 500k for married).

The vendor that I signed on with, in addition to other quotes, have all said the needed repairs would be more because there were things that the adjuster left out and did not understand the nature of what was needed, thereby attaching a low value for repairs. 

@Jackie Linne - SM LLCs will report directly on your personal return, some states have additional filings and fees you should look into.

On the Rookie podcast, I heard about an additional step that some are taking and using desktop appraisals.

But I will utilize this recovery time to gain as much knowledge as I can.I have a plan in place to be debt-free in the next 6 years so I know that will help as well. 

It's interesting to see how the market evolves and what factors cause those changes, and there's so much real-world perspective I can gain from this community.I wanted to kick off a conversation about the latest trends you've been noticing.