It’s definitely smart to evaluate the tax and cost implications of your funding options.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

Instead, You get to use the tax for your own benefit and purchase better property/ properties.

$6K in taxes and expense vs $17K in Federal and State taxes.Ok so after all this, book a consultation with a tax advisor.

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

I keep scans or pictures of all of all letters I send this way including the letter as readable before it goes into the envelope which includes the tracking number written on the letter, plus the filled out certified mail paper and the envelop after its addressed. 

Tax structuring and LLC advice you can get for a paid fee too.

So PLEASE don’t make another huge financial decision and then tell that same person after you do it.

Taxes: Be aware of potential transfer or capital gains taxes, depending on your state.4.

If you do place the property in her name, then inherit it later, it does allow for you to receive a step up in basis at that point, allowing you to sell the house shortly after her death without paying capital gains tax.5.