The same rules that apply to funding appreciated property to any LLC or other entity would apply. The basis would be your tax basis only not the appreciated basis. The further problem with contributing appreciated property to a fund would be that the property contributed is not a capital gain. Therefore, no deferral of capital gains would apply and the interest in the fund will not get the 10-year tax-free treatment. Selling to the fund and contributing the capital gain portion would be the better option. Even this option could have problems with violating the related party rules. There are multiple options such as leasing the property. It's best if you contact a tax professional for guidance for your unique situation.