A failure to soinclude such gain in gross income in the regular manner shall be deemed to be an election by thetaxpayer to have such gain recognized only to the extent provided in subparagraph (1) of thisparagraph even though the details in connection with the conversion are not reported in such return.If, after having made an election under section 1033(a)(2), the converted property is not replacedwithin the required period of time, or replacement is made at a cost lower than was anticipated at thetime of the election, or a decision is made not to replace, the tax liability for the year or years forwhich the election was made shall be recomputed.

For this reason, if you're buying a property for much less than the assessed/market value of the home, you may have a good tax appeal to file, thereby reducing your property tax liability.  

A balance sheet would show that your liabilities are well below your equity.

This property meets the requirements of Sections 1947.12 (c)(5) and 1946.2 (e)(7) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.” __________________________________ by [Name of Landlord][Landlord’s Contact Information]

I'd also assume there could be some liability on your part for seeing her condition and not calling in help.But like I said... new at this gig.

I'm looking for liability protection as well as tax advantages. 

Although don't quote me on this, but I read this  a couple months ago from a blog, he mentioned this:"The trick to reducing your tax liability is two-fold: start an LLC but tax it as an S-Corp.

If you have a lot of personal assets to protect, then talk to both an attorney and an accountant -- the accountant will tell you the pros and cons from a tax standpoint, and the attorney will tell you the pros and cons from the liability and asset protection standpoint.In terms of how to tell if they are good, read this:https://www.biggerpockets.com/renewsblog/2010/05/1...

Umbrella policy is a secondary layer of coverage ususally to protect you against liability claims.

I have accounts set up for mortgage loans as liabilities...all set up under one master mortgage account, and on the expenses I have a master account called mortgage interest, and under that each payee.