I would also document what has been done to correct the issues that caused the claims. 

@Kelly Ellis, @Carl Fischer is correct. 

I never though to put the a separate expense/income sub categories under them, I was going to do it to the general QB file, as long as I tie them to the correct tax line, then we should be good. 

Just my 2 cents, but I never let the lowest common denominator chose the path forward.

From my understanding, it should not be problematic to move the IRAs over as they are not subject to capital gains, correct?

If I understand your goals correctly, you want single family that produce both income and wealth.

I liquidated a majority of my stock market/mutual fund holdings slowly since Aug (I think stock market is near a correction as well) and have picked up 5 properties in Central WI..  3 duplex, 2 SFR..  

I have always found it useful to calculate this before I start down the selling path.  

Besides, having the kids as the only signatories to the lease helps them along their path in life.Now, to answer your question.  

You are absolutely correct you do not need to pay $1495.