Your IRS refund will be consider as seasoned funds.

You can be primarily involved in managing your rentals in the US and the IRS will consider it active income.

. - Would the gift of equity in this deal (according to IRS) to be $22,500 (purchase price less existing mortgage) or $27,500 (appraised value less purchase price)?

I don't claim to be tax savy although I'm seeing more and more the importance of learning how to navigate the racket that is the IRS Tax system.

One such strategy can be claiming a home office. 10 or 20 years ago this was a red flag for the IRS, but times have changed and the IRS has even made public statements saying that they recognize the increase in home offices.With April looming, what strategies do you use to qualify your real estate business for a home office (assuming you don't have another office)?

I have looked into putting our name on the title via a quitclaim and then doing a cash out refinance, paying my wife’s dad back and then putting anything extra into a new down payment, but I have read that we could screw ourselces over, or my wife’s day over by the IRS seeing it as a gift.I would love any suggestions.

For your properties, either you need to meet the requirement that your rentals qualify as a Trade or business or you must meet the new safe harbor that IRS put out, meeting 250 hours and so forth. 

This is way before you start then figuring out how much of that is eligible for the 199A exclusion.Also, if you look at the instructions for the 3115, you'll note the following at the bottom:Time Per Response Recordkeeping ............... 60 hours, 1 minute Learning ................... 16 hours, 25 minutes Preparing .................. 20 hours Sending ................... 32 minutesWhile the IRS frequently overestimates the amount of time a mostly organized taxpayer takes to put together these forms, I think the above is actually not a horrible estimate for this particular form. 

Did some research and IRS' website says to file a summary on one Form 8824 and attach my own statement. 

Robyn, according to the IRS the following is prohibited:"A disqualified person’s transfer of plan income or assets to, or use of them by or for his or her benefit"See for reference:https://www.irs.gov/retirement...You absolutely may not use live in the property owned by your Solo 401k!