I appreciate your feedback on this IRA issue.

1.  Regarding the rollover of in-kind assets held in an IRA.  This probably goes in the category of "you learn something new every day".  The IRS is of little help on this subject.  I haven't done an exhaustive search of IRS opinions on this issue but I could not find any mention of directly rolling over IRA assets like, stocks, bonds, real estate, precious metals, etc.  What I mean by a "direct rollover" is that the assets do not have to be converted in to cash.  The assets can be directly transferred to another IRA.  I did find several articles on the subject for your reading pleasure.  They seem to indicate it is a function of the IRA custodian/trustee as to how this is implemented.

https://pocketsense.com/can-inkind-transfer-ira-4716.html

https://www.sapling.com/12230469/inkind-rollover#:~:text=An%20%22in-kind%20rollover%22%20is%20a%20me....

2.  On the other issue regarding who paid the taxes and where the money came from.  I don't have good historical documentation but I believe the IRA trustee paid the property out of cash funds in the IRA.  At some point......maybe 10 years back.....the wife started paying the property taxes out-of-pocket.  I know this is not correct but the IRA has been liquidated so not sure there is anything I can or need to do regarding this issue.

Anyway, thank you for comments and if you run across any official IRS documentation on this subject, let me know.  And vice versa.