I realize that, if true,  this is governed by state law rather than federal statutes, and therefore there will be fifty different answers. 

However dependent upon taxable income you could get away with a pretty low tax bill due to favorable capital gains tax rates.Be sure to work with a qualified intermediary and a tax professional to ensure you comply with all 1031 exchange regulations and to be sure you keep basis correct as all a 1031 does is defer your gain.Happy to help run some numbers or do some basic analysis for you if you would like. 

If you can invest at a higher return than your interest rate, I'd refrain from paying it off so you can continue to reap the tax benefits of deducting mortgage interest from taxable your rental income.

Assuming you are in the 22% - 24% federal tax bracket for most of your income, your tax would be about $76,000(disregarding standard/itemized deducitons and other income).If you can somehow show rental losses = $300,000, you would get a refund of her federal taxes and potentially state taxes also.

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

That would not be a taxable event. 

If you’ve owned it for a few years there a cap on the amount they can increase the taxable value, I believe it’s 15% excluding improvements to the property.

This salary includes both taxable and non-taxable income.The formula for calculating child support payments can vary depending on your state.

Also, if your multi-member LLC filed as a partnership in previous years, you may need to file a final partnership return.It’s always a good idea to consult a tax professional or attorney to make sure you're following the correct steps for both federal and state requirements.

Depreciation recapture tax is the taxable amount on deductions you made for property depreciation.