No boot or mortgages involved at all, so pretty straightforward.Form 8824 (Like Kind Exchanges) was pretty simple to understand and easy to complete, and it reflected $0 recognized (taxable) gain, just as I would have expected.

That “wanting to learn everything at once” phase is something most of us recognize, and it can definitely feel overwhelming.

Assuming you don’t currently possess world recognized designations, it will probably be worth it for you to acquire the education necessary to obtain one or more of the following designationsCCIM Chartered SurveyorCRECCA 

I am trying to avoid a situation where the sale triggers an automatic reassessment/reset before the new entity is recognized by the program.

Most sub to transactions are MADE in that the purchaser recognizes that the seller is “upside down” with the debt equal to or greater than the property value.

Running numbers over and over is what really builds confidence and helps you recognize a good opportunity when it shows up.

Quote from @Michael Plaks: @Matthew BrownThe only two certainties are:1. cost segregation has nothing to do with your local property taxes2. cost segregation will not help you with your NJ state taxes, because NJ does not recognize bonus depreciationWhether or not it will help you with your Federal (IRS) taxes depends on a lot of factors that have to be evaluated by your own tax accountant and not by cost segregation companies.

Kenneth sourced the opportunity through local market activity and recognized the spread early.

Let Them Decide – Many tenants, when presented with this information, recognize the gap between their rent and market value.

You cannot “decide after” and fix it.Also, if the basis was stepped up, she might not “need” a 1031 to avoid a big gain, but a 1031 can still help if:The property has appreciated meaningfully since date of deathShe has taken depreciation after inheriting it and wants to defer depreciation recaptureShe simply wants to keep rolling into other investment property without recognizing current gain4) Quick action steps I would takeHave an estate attorney or CPA confirm whether it was community or separate under Texas rules (facts matter).Get a solid date of death value (an appraisal is best).Confirm who will be the seller at closing (estate vs widow) because that controls who can do the exchange.If she is exchanging, get the QI lined up early and make sure the contract language and closing flow support a 1031.If you tell me whether he bought it before marriage or during marriage, and whether there was a will or it is going through probate, I can point to the most likely path and the common pitfalls.