Simply gifting him half the property now wouldn’t immediately allow him to claim the exclusion without fulfilling this residency requirement, I don't believe.One thought would be to use a HELOC to pull just enough equity out of the current home and use it to buy a smaller home, or at least the down payment.

I noticed that the previous owner let them pay half the security deposit and the other half later, which is a red flag.

You should track your own units expenses as well so when you move out, you can quickly reclaim any expenses or depreciation you built on the personal unit when converted into a 2nd business unit which would then be included on your schedule E.You also write off half of your property taxes, insurance, HOA dues, or any shared expense.

Warehouse space for the win....right now....just wait until AI machines are efficient and need half the space.

I'd guess half of this final third eventually sold, even if several years later. 

If this franchise has half a brain, they are going to sell the same package to at least ten other people in Memphis.

Live in one half, rent out the other.

Spend more than half of your total working hours in an RE business in which you materially participate.2.

I’m looking to purchase a 10 acre parcel either in Columbus, Dahlonega, or Helen.I’d like to live on half the land, and develop the other half into five A frame luxury short term rental units. 

About half the people I talk to are investors looking in that area.