., if the property is located within the official boundaries of an urban renewal or urban redevelopment district, the investor can make repairs, upgrades, additions, all new construction, for any type of property, and the redeeming taxpayer must pay the amount the property increased in value because of that.Just because there are tax or other incentives for neighborhood revitalization does not mean it is an official urban renewal or urban redevelopment district. 

OP was trying to figure out what could possibly go wrong.My point is, if the taxpayer is deceased, did or does the State have a duty to identify a PR or heirs. 

@Pandu ChimataYou and your partner need to calculate the gain that you will have on the sale of the property.Gain will be calculated as selling price less adjusted basis(purchase price + improvements - depreciation) less selling expenses.You should reach out to your accountant to discuss whether or not you will be required to make an estimated tax payment.You should also be mindful that you may want to look to making estimated tax payments to California and the state the property is located in(if it is not california).

How does a taxpayer become certified as a Qualified Opportunity Fund?

Then all of the activities of the trust and the LLC are reported on your personal tax return so the IRS disregards those entities anyway and sees you as the true taxpayer anyway. 

There is a $2500 limit ...you’re Referring to the 2016 de minimis safe harbor election taxpayers can take for the improvement of existing property that otherwise must be depreciated?

@Ryan Huddleston, if that LLC is a disregarded entity (it doesn't file a tax return and you are the only member) then you're really the tax payer anyway so moving it back and forth should be no problem. 

@Viren Perumal,  Just gonna throw it out there - if your QI didn't tell you that it was very risky to transfer title and change tax paying entities immediately prior to a sale then you have the wrong QI. 

You get to defer that tax payment indefinitely and use it for your own profit.The end game for you would be to use the 1301 exchange process as you buy and sell properties until you finally 1031 into a building to house your gym. 

We believe she did this to freeze her property tax payments and get the over 65 deduction.