"Sell" property to spouse?

[Michael B.]

I'm wondering if there are any tax implications for "selling" a property to my spouse and want to verify if there is a certain order I need to do accomplish things in to make sure it goes smoothly.

I have 20 rental properties with title and mortgage in my name only, 10 with conventional financing, 10 with a portfolio loan.  I'd like to "sell" my spouse 10 with the portfolio loan so she can get conventional financing on all of them.  I know there is a six month seasoning requirement for non-arms-length transactions so planning to get a portfolio loan for those 10 in her name only on the loan and title.  After the six months, refinance to a conventional mortgage for each of them.

I read over IRS publication 544 and found a section about not being able to deduct losses which shouldn't be an issue as they have appreciated, but it also mentioned owing taxes on gains.

Questions:

• Since between spouses, do I need to pay on gains and depreciation recapture?
• Can I do this in one transaction or do I need to add her to the deed first and then refi?
• Does it make sense to just add both of us to all the deeds and then just get the mortgages in one name?  Is that easy with conventional?
• My property management company would issue two 1099s, one for each of us, do I combine rent/expenses for the year per property, do do I need to list properties twice to ensure the 1099s match?
• Anything else I'm missing in this process?

Thanks

[Michael B.]

Thanks @Jeff Copeland and @Dave Foster.  I've already talked with my lender who is fine with it as we are closing out my mortgage as part of the process.  I just wanted to verify things as I would expect my wife to now get the 1099 for income in her name instead of mine as in years past so wasn't sure if that would raise any issues on my taxes.