@Jeremy Cart, the trust is a tax paying entity. 

I've not once, ever, done a BRRRR-related 85% LTV cash out refinance, usually people doing that are refinancing out of FHA and into conventional to drop the mortgage insurance. 85% LTV FHA Cash Out refis are either FHA-to-FHA, or conventional-to-FHA, the opposite of what BRRRRrrrr people are doing (FHA-to-conventional)... these people are refinancing to sign up for mortgage insurance, all for that little extra 5% (they they are paying 35% of it towards fees) they want.And these are FHA loans, which means government insured, which means taxpayer on the hook.

I've not once, ever, done a BRRRR-related 85% LTV cash out refinance, usually people doing that are refinancing out of FHA and into conventional to drop the mortgage insurance. 85% LTV FHA Cash Out refis are either FHA-to-FHA, or conventional-to-FHA, the opposite of what BRRRRrrrr people are doing (FHA-to-conventional)... these people are refinancing to sign up for mortgage insurance, all for that little extra 5% (they they are paying 35% of it towards fees) they want.And these are FHA loans, which means government insured, which means taxpayer on the hook.

Get the city/taxpayers (basically their tenants) to pay for as much of it as possible, then finance much of the remainder and use their remaining funds for other business ventures.With interest rates being what they are, it'd be a wise move to take advantage and get a few properties now rather than getting one asset.

If you have ever heard of the “marriage penalty,” this is another great example of such penalty because when married, the thresholds stay the exact same as they were when you were single.This poses a problem for high income taxpayers like me, especially when MAGI is above $150,000 (My gross is over $400k/year).

@Denise Evans I sent the notice to the taxpayer by CMRRR and a week later by regular mail.

@Jacob Graul Any tax paying entity can do a 1031 exchange including an irrevocable trust. 

We would then ask for their ITIN as a replacement in order to comply with applicable rules and regulations of the Bank Secrecy Act and USA PATRIOT Act.https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin#itin

It is hard to give detailed advice to a taxpayer unless they have all that information.

If the taxpayer/spouse LLC is treated as a disregarded entity for federal purposes, you would generally file AL Form 40NR.