My question is this:What is the best way for me (if possible) to wrap up this house in the next few months, sell it, and avoid paying capital gains tax?  As

So a 1031 exchange is one option to avoid tax.Taking a heloc, or refinancing a property is another way to avoid selling and paying the tax.  A

There shouldn't be any gift tax as that person isn't giving you anything for free.  

@Griffin GoudreauHi Griffin,Also be aware that if you get into seasonal rentals, which are popular here in SW Florida and Cape Coral in particular, you must charge your tenants a 5% tourist development tax as well as 6.5% Florida sales tax.

and you will just pay minimal tax a year on note payments

@Zachary Beach, California has always taken the position that if you sell California real estate and 1031 Exchange into replacement property located outside of California you will owe California state tax when/if you sell the property and cash out/pay the tax.  A

For the Per Diem Rates Meal, won't that still be 50% deductible for tax? As

See if they are interested in seller financing (if they just don't want the headache of owning out of state, but still want the cash flow and maybe don't want to 1031 or tax a big tax hit all at once). 2.

I would think whatever increase in value between then and now will be subject to inheritance or capital gains tax??As

fwiw, if you are wanting to know "tax burden" you have to look at more than income tax - as that can be made zero by deductions etc...