You can make sure her will states you would inherit it, but it's risky because wills can be changed at any time.3. 

Quote from @Stacie Telles: Hello all, I inherited a duplex fully paid off.

The recipient inherits your cost basis (what you paid) for calculating capital gains or depreciation.You and your spouse can each gift $17,000/year per recipient under the annual gift tax exclusion ($34,000 total).

I will have some inheritance coming in soon (About 50k).

Quote from @Joshua Alcantara: I’m looking to move out of the current "red ocean" of real estate wholesaling and focus on helping sellers with problematic titles, such as liens, divorce issues, probate, quitclaim deeds, etc.All my previous high-value assignment fees came from working with sellers who inherited properties without a proper deed.

There could be local considerations that are tax and inheritance related.Thanks for the reply Ken.

It was not an inheritance. 

We have always kept inherited tenants, gradually brought up the rent.

However, this has to be the primary residence of everyone on title in order to qualify and even if that were all true, we're still only up to $1M that way.I agree with the other commenters, the parents should continue to own it and live in it as their primary, leave it to the daughter when they pass, and she inherits it at the stepped up cost basis. 

Hi All - When selling a property with the intention of immediately buying another building via a 1031 exchange, can anyone recommend strategies for removing or at least lessening the risk of running out of time to meet the 1031 deadlines?