Bad excuse, cut your losses and get another flooring professional.

Found this in the Arkansas Code:"If the tenant's holdover is a willful violation of the provisions of this chapter or the rental agreement, the landlord may also recover an amount not more than three (3) months periodic rent or twice the actual damages sustained by him or her, whichever is greater and reasonable attorney's fees."

They get a huge tax write off as a loss as well. 

I am at a loss and I need educated guidance . 

There will definitely be a lender that has a lien recorded against this property and the lender will look to recover the money owed. 

so the only way to mitigate my losses from cap gains is to live there for one year and one day?

I feel that if I don't sign it for 6 month I will loss the contact and start all over again.

The rehab was completed in Mar 1984, and after several failed attempts to sell, including a sale to a buyer in July 1984, and then the buyer got a mortgage approved, then loss his job, then the mortgage company rescinded the mortgage approval.

Your community owner/operator, however, can recover the cost of providing utilities to you indirectly through your rent, as long as such costs are distributed equally among all households. 940 C.M.R. 10.05(4)(c).

The effect of the 1041 rule is to defer a taxable event, recognizing a gain or loss, until the recipient, in this case your wife, disposes of the property.