Carl
Level 15

Investors & landlords

what's the outcome if you remodel the two homes to covert to one home?

For one thing, I'm confident it would cost you more than you could possibly save on taxes. As it stands right now, I'm quite confident the public records on the property assuming it's two physically attached duplexes, classify the structure as multi-family use and not single family use. So reporting the sale of the entire structure as your primary residence will tend to raise eyebrows at the least.