Read more: The Basics Of REIT Taxation | Investopedia

@Donald Flynn This is a specialty area of taxation.

I have a background in residential carpentry, taxation, and personal finance.  

It made use of "Conditional Release of Contract" rather than an "Assignment of Contract"; the release is a NON-PERFORMANCE of the contract, and hence there is no (convoluted) logic to taxation of this.

The best way to transfer property is to inherit it if that’s is an option.If networth is more than 22M, estate planning needs to be done to minimize estate tax at the end.If the goal is not to go probate because your state has high probate fees, the assets need to be either titled as joint ownership with survival clause or needs to be in the trust.  

Question- did you resolve the double taxation situation?

I'm getting conflicting information so wondering what the experience of those here in NZ who receive rent, and those here in NZ who have rentals in the US and elsewhere like @Dean Letfus, and what the taxation looks like for them?

It means double taxation (taxed once at the entity level, and once again at the individual level when distributions are made). 

But, you need to separate the accounting / taxation from the legal aspects. 

I understand that we will still have to pay the capital gains tax at a long term rate if we hold for longer than a year.