tax consequences with inheriting income properties

[Brandon Fischer]

Hi everyone, I hope this is the right place for this question, I found a few posts somewhat similar but I'm still a little unsure. I recently started a RE holding LLC with my brother because my grandmother is giving us two duplexes in upstate NY. My question is, should she gift these properties to us? Or should she sell them to us at a low price? Long story short, we are working to get the deed transferred from her name to the LLC's and keeping them under her name until she passes is out of the question unfortunately. I'm just trying to avoid any unexpected taxes that we may encounter with this transfer. I did some research and found gifting the properties will involve a gift tax, so I think my best bet is a "sale" ($1) to keep it out of the gift category? If so, will I only pay capital gains taxes once if the LLC decides to sell the properties down the road? Or will be have to pay taxes on the difference of the market value? (example:LLC bought properties for $1, the market value is 200k, will we be taxed on the remaining $199,999) Sorry if this is a confusing question, my attorney pointed me to our taxguy, who he didn't give me a 100% answer and pointed me back to the attorney =/.

Any information would be greatly appreciated,