Gifting equity in a house may be more trouble than it is worth if you are not near the life-time exclusion1) Potentially having to get the property appraised everytime an equity is gifted2) Having a title company update the title every time3) Exemption of the gift tax return is normally for cash gifts below the annual gift tax exclusion, you may still need to file if you gift non-cash4) If there is partial ownership over several years, having to properly pro-rate certain items such as real estate taxes, mortgage interest and rental income if the property is a rentalBest of luck 

The best place to start is with a spreadsheet that has every every cost itemized. 

The property taxes will be on his Schedule A during the time the property was his primary residence, assuming he itemizes.

We understand that not every negative item we dispute will come off.We persist until we succeed because you must have a high-level of doggedness as a real estate entrepreneur.We understand there will be sunk costs and time being wasted.

Of course you can get discounts for having certain items FULLY updated, like plumbing.  

Wind is one of the subtle items that Insurance companies are starting to exclude. 

Here's a https://www.irs.gov/businesses/cost-segregation-audit-technique-guide-chapter-4-principal-elements-of-a-quality-cost-segregation-study-and-report to the IRS website noting specific items that are included in the cost segregation study report. hmm, that website is a 404 error.  

The PM should provide itemized items of what was done.

By making partial dispositions, you can also avoid subsequent recapture on these items when you go to sell.

Anyone that has sold items privately would have countered any offer.