With the 50% downpayment you are referring to legislation from out of the US I imagine?

If you don't have time to wait to annually keep moving their interest in the property to you, I think the liftime gift exemption is up to $11Mil (and I hear "something" about Biden doing "some sort"  of legislation about it) so they could claim it against the lifetime cap and gift their entire interest in the property to you.I hope that helps, and maybe one of the accountants like Plaks or McElroy or Sidiqqi will chime in.Good luck.

State legislation enacted in 2017 led to an overhaul in the ways ADUs are regulated in the state, and made it easier for city planning departments to approve their construction.

The flush language in Sec 280A (and the legislative history) makes this clear.Another poster suggested the Morcos case doesn't apply because there was only a single dwelling unit and not two dwelling units. 

The property is located in WA state which has legislation on the floor introducing rent control and changes to eviction laws.Money facts: As a rental the property cashflows $310 after mortgage, escrow and managment, small repairs planned or unplanned negate all the cash flow.If I sold it I could expect between $140-150000 after taxes and expenses.

I find this bill extremely interesting when you combine the factor of the new legislation in Strawberry Mansion limits the construction of 3rd stories and roof decks on specific blocks.

A handful of other states may also have similar legislation.

My state legislators are asking me for specifics. :)  Thanks for the quick reply and congrats on hitting 1000 posts today.

Also our local REIA in KC is collecting names and contacts for our future state wide MO REIA to deal with legislative issues.  

Having gotten over the "first property" hump, your chances of meeting your goal are a lot higher so congratulations.I'd also recommend checking out one of your local real estate groups such as Black Diamond REI in Massachusetts or RIREIG in Rhode Island.At the very least drop in every few months or so - besides the networking opportunities, there are often very valuable updates on new or proposed legislation affecting landlords.The general public knows that we're running a business when we rent out property, and expects us to know all the laws affecting us (and has no compassion if we don't), so being a member of a local group or visiting periodically is one way to try to stay current with those laws.Again, welcome and congratulations!