Using a 1031 exchange property to fund a charitable remainder trust will let you keep deferring capital gains (as no tax will be due on the sale of the property by the trust) since it's a charitable entity.

It's a strict 2-year requirement.As for strategies to avoid capital gains on the sale, if your client doesn't meet the ownership and use requirements for the Section 121 exclusion, they might explore other options such as:1031 Exchange: If the property is an investment property rather than a primary residence, your client could consider a 1031 exchange to defer capital gains tax by reinvesting the proceeds into another investment property.Installment Sale: If your client is willing to accept payments over time, they could consider structuring the sale as an installment sale, spreading the recognition of the gain over multiple tax years.Charitable Remainder Trust: If your client is charitably inclined, they could contribute the property to a charitable remainder trust, receive income from the trust for a certain period, and then have the remaining trust assets pass to charity upon their death, potentially reducing or eliminating capital gains tax.These are just a few options, and your client's specific financial situation and goals would need to be considered in determining the best approach.

In which case, take advantage of those, or restructure so you re able to.5) Consider charitable giving, if that is a part of your goals6) Consider what equipment and other purchases your business actually needs and purchase those to continue growing the business. 

@John Smith, 1031, death, a charitable remainder trust, possibly a 721 upreit (although that only acts like a 1031 and defers temporarily),  and possibly a sale and a purchase in the same year where you cost segregate the purchase and take whatever bonus depreciation is available (again though a weak substitute for the 1031 exchange).  

Domicile: WA State (income tax free)Property location (Texas): (income tax free)LT gains + Depreciation recapture ~ $300k on a $500k income property ~effective / average tax rate = 12% for past umpteen yrs (relatively low income, avoiding IRMAA and doing Roth rolls (no 'realized' income, just transferring from tIRA to Roth = vast majority of annual MAGI income)In the end (coming soon, ~17 yrs) ALL remaining estate will go to charities / Charitable Foundation / DAF.

(You act as the bank)Charitable giving to offset gainsTransfer the home into a trust (Like a CRT for example) that will avoid capital gains tax and you can have pay you a set income stream until your death and the remaining funds would go to charity.None of this is or possibly could be advice, I don't have enough info to fully know what is "best" but these are some ideas to think about!

The book is saying open up multiple accounts for your business for the purposes of charitable giving, owner income, taxes, paying down bad debt, etc.

If you donate them to a 501(c)(3) charitable organization, you can get a tax deduction equal to the current fair market value of property, no matter what your parents paid and no matter whether title has been quieted or not.  

“If an individual is part of a high-deductible health care plan, making a contribution into their health savings account would also reduce taxable income.”Donation to a Qualified Charitable OrganizationCharitably inclined individuals might consider donating cash or appreciated property to a qualified charitable organization, potentially providing a tax deduction to help offset that tax year’s taxable income.

Charitable Contributions are not reported in the way you are indicating.