Given the current environment of high prices and high interest rates, it is not likely that a taxpayer will pay tax on rental income for properties purchased now.

However, the real value of those deductions to a particular taxpayer can only be determined in conjunction with their tax professional.

Also, why would State not accept any “contemporaneous record” maintained by the taxpayer (or taxpayer’s CPA)?

You can sell that property as the trust and buy as yourself or as a "disregarded LLC"(an LLC that you are the only member of and that also does not file it's own tax return.In a 1031 exchange, the taxpayer for the old property must be the tax payer for the new property. 

Probably a good thing for US tax payers since we are in a seller's market.

Talk to an accountant about de Minimis Safe Harbor and Safe Harbors for Small Taxpayers.

In DeCleene, 115 T.C. 457 (2000) the taxpayer closed on a vacant lot and then transferred the lot to a third-party while improvements were constructed.

consider the opportunity cost of doing this#1) sell house for cash or to a buyer with their own financing from a bank, etc and you get 315K at time zero, you invest that at historic SP500 8.4% return over last 220 yrs and it grows to $3,541,514.46#2) do owner financing and you get 100k up front that invested at 8.4% grows to $1,250,000, plus you get your payments at $1400 x 360 months or $502k, invested grows to $3,265,000 total including the 1.25 mil aboveso you come out 300k better not doing it and you don't have to service the loan and all the other risksremember banks don't even carry mortgage notes after origination, they dump them onto the US taxpayer via illegal-unconstitutional havens like Fannie/Freddie/HUD, and for last 15 yrs the FED has bought every MBS in the country, which frees up the Banks capital to do it again and make the real money on churning the points and feesplus will next 30 yrs have higher inflation than last 30 yrs?

That's why we have tax-payer-funded attorneys to take on cases for free.

Any taxpaying entity can do a 1031 exchange.