More buildings are bought, with equity divided as seen fit, with an eye towards siblings and the IRS) and you go from there.You will have problems, however, helping yourself to 30 percent equity up front.

My sibling/business partner would like to give me X amount for 50% ownership and we transition it into a rental (I am moving, but remaining in CA).

I contacted PA revenue department and found out based in their calculation it is $9500 owed to remove lien. they applied 12.5% as sibling tax rate. when i asked to apply 4.5% as surviving heir is grand daughter, they said in obituary they mention deceased had sibling. while foreclosure has no mention of sibling and only mention of gran daughter which is 4.5%2 questions:1. they are asking me to prove obituary is wrong and actually surviving heir is grand daughter. how i can find this information?

So no depreciation deductions for you and you'll have the capital gains issue to deal with if/when you choose to sell.This scenario also gets VERY tricky when you have siblings or other people who are hoping to inherit your parent's assets, so tread lightly. 

Also, this is my first commercial deal.My client owns an insurance company with his sibling and he is selling his equity position to the sibling and then staying in the company as an employee.

She has no kids; her siblings are older and want nothing to do with a rental property.

There are 3 siblings. 1 of the sibling had 3 judgments filed against her when she owned her interest in the house. 2 years later she quit-claimed her interest to one of the other siblings.

Are you an only child, or are there siblings to deal with as well?  

I come from working class roots, and my mission is to see both my siblings and I living very comfortably in a sustainable way.

There were several siblings, 12 to be exact, who were all trying to get a piece of the profit from the sale of this property.