The IRS official position is that a husband-wife LLC in a non-community-property state such as NJ must file a partnership tax return.

The IRS does not allow the exchange of real property for partnership interests, including LLC interests, under Section 1031.

And we have the ability in life to hop up there (it's almost 1000 miles from us) should we need to.

Ask the IRS how they came up with 200k+ of taxes owed.

Consulting with a tax professional is highly recommended to ensure compliance with IRS regulations and to maximize your tax benefits.

For example, the Internal Revenue Service (IRS) has published various materials relating to tax regulations on real estate investments.Publications such as Publication 527 (Residential Rental Property) and Publication 946 (How To Depreciate Property) provide detailed information on rental income, expenses, depreciation, and other aspects of real estate investing.

Definitely seek some expert advice from an accountant or CPA who can advise you on the best ways to reduce the amount of taxes you owe to the IRS

If anyone hops on a call with you from that they are going to try to sell you a wholesale coaching program or something.

Will the IRS believe that she can be busy with 3,5,7,10 doors?

I would be happy to hop on a call sometime and talk strategy.