Lying to the IRS is a horrible idea. Using a non-lawyer non-CPA for tax advice is a worse idea.
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There is so much wrong with the "tax man's" idea, I don't even know where to begin. The actions sound potentially criminal and could be construed as tax evasion. I highly suggest that you speak with a tax attorney and discuss what legitimate actions can be taken in order to mitigate your tax liability (e.g., charitable contributions, etc.).
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If you sold 10 acres in February, 2013, then that is a completed transaction on which you must calculate your taxable gain. If you want to create a partnership and contribute the remaining 12 acres to the partnership, there is nothing wrong with that. Of course, if the property is in the partnership, the loan should also be in the name of the partnership. Beyond that, I am unclear on your facts. Was the gain $680,000 on the 10 acres? If so, that is a reportable, taxable gain. As for the "full $500,000 tax exemption," I believe you are referring to the $250,000 per person exclusion for selling a principal residence. Does the 10 acres qualify as a principal residence for you and your wife?