Years ago, I could file claims for small, even minimal, damages on my rental properties, like a few fence pieces blown off during a storm.

Hence I will probably pay a good chunk of change to uncle Sam when I file my 2024 taxes.

Lenders title insurance policy should be obtained and all documents properly prepared and filed accordingly.

Since they can always file for the tax deed and get their money back plus interest, it is a no brainer for them and it's much more legal than laundering their money.

I also call the local court system to see if anything is flagged on file. 

They will help you draft the necessary legal documents, such as master deeds, rules, and regulations, and ensure everything is filed correctly at the registry of deeds.

Trying to get a sense if it's even worth exploring this on a smaller scale like I'm talking about.You don’t have to do anything but professionals will typically yield the best results (and save you a lot of time filing or potentially refilling)  

Depreciation, and if it will increase your property tax.Find out what will be your new insurance requirements, and verify your lenders  are aa onboard with this transfer.Add up your resident agent fees, and find out the yearly costs for PO boxes if needed, plus the yearly cost for corporate formalities for each shell.The Federal Government now requires every entity to file with them yearly, the owners of the shells.

Many people mistakenly think that bonus depreciation only applies to new properties or recent acquisitions, but you can indeed retroactively apply it to properties placed in service after September 27, 2017, thanks to the Tax Cuts and Jobs Act.The IRS allows you to catch up on missed depreciation without amending prior returns by filing Form 3115 (Application for Change in Accounting Method).

@Mike Smithy If it were me, I would file the paperwork, serve him, and see if y'all can settle outside of court.