This will strengthen your documentation and will have basis if you are ever challenged by IRS.

•Implementing in TurboTax:•Adjust the Asset Entry:•Reduce the basis of the property by the estimated value of the old roof.

Tax-wise, consult a CPA to handle the stepped-up basis and inheritance implications.

@Alexander F PollockYou may lose a tax benefit of a stepped up basis for capital gains purposes transerring interest away from her parents.Also consider conducting a judgment searches on all parties to the transaction to confirm there will be no title problems for would come up when the LLC sells in the future because you will not have title insurance to cover prior owner issues.

Cost basis is 225K and comps place it at 325 to 350k. 

Some things to consider with the above suggestions of creating an LLC and contributing the property + $100,000.The basis the partnership has in the property is transferred from Person A.If person A's basis in the property is $100,000 but the value is now $200,000.The depreciation would be based on the $100,000 instead of $200,000 which may 'upset' partner B.Furthermore, you have to properly structure it so the IRS does not see it as a 'disguised sale'.A disuised sale can potentially occur when Partner B contributes $100,000 into the partnership and it is immediately transferred to Partner A.best of luck

But those folks get scammed everyday as we know.. with fake lenders.. the fake lenders in the commercial world have been around for ever..

I want to get to a point where I am buying properties every day across the world.

I help investors like yourself on a daily basis.

I'm not sure how well versed they are in the trust details but it makes sense that it would be due to the step up basis so if there's a way I can approach them to give them a solution to that, that would be great.