I often see this interpreted as being asked to work for nothing.

This is an elderly Asian couple and the daughter did most of the talking/interpreting.

So if I'm off-base, I certainly apologize to you all and will have to apologize to her... otherwise, I'm going to have to make 100% certain that this interpretation is correct before I speak with her again. 

If I am interpreting your question accurately, filing the lien (with the county clerk in NJ) against the LLC is done so that when the bank that wants to refinance you does its underwriting, it sees (by looking in the county clerk recording system) that there is a mortgage (which is the lien). 

More so, each accountant has their own procedures and interpretations.

As you get further away from standard real estate practice, the risk is increased by a “legal” risk that your protection may be interpreted quite differently than you expect by a court and that the subtleties of the protection a mortgage or trust deed document provide with established law and court decisions handed down for (in the U.S.) 250+ years is not existent. 

I know a lot of people interpreting "upstate NY" think of areas north of NYC....  

So, if you are in the 24% marginal tax bracket, the depreciation unrecapture will be at 24%, not 25%.There is probably one small "interpretation" issue that you are having with the worksheet. 

A real estate attorney is the only one who can directly answer questions regarding your interpretation of/questions about the clause.

To do this, you need to make sure and find designers/contractors that have built many ADUs and can properly determine what your full required scope will be.Also, jurisdictions are tightening their interpretation of ADU rules, and we're finding MANY more plan check comments are coming back for items not previously requested.