Unfortunately real estate in Belize would not qualify for 1031 treatment as replacement property for investment property sold here.

The valuation and reinvestment requirements then all benefit you if that is the scenario.Properties you buy with the primary intent of resale would not qualify for 1031 treatment.

I think the town is still assessing the building as commercial therefore the higher tax treatment.

You can elect "pass through" tax treatment when you form your LLC, so the entity itself is not taxed.

I recently sold a day spa in Silicon Valley that I operated for 30 years; I've also concluded 20 years of spa management consulting and am ready for a new industry (even though I'm shocked to discover that landlording does not include free facial treatments and pedicures.) 

There are numerous types and uses of property that qualify and it is up to you and your accountant to be comfortable with your treatment and intent for qualification of the property.  

It means that income is taxed as if you are self-employed vs. the preferential tax treatment of investments.

But I simply let her know my opinion that a treatment does not guarantee a resolution to the problem.So, I have to seriously consider cancelling my contract once this is verified by the proper people.So back to the original question.

A single member LLC is disregarded for taxes, unless you elect special tax treatment, so thats irrelevant to the discussion.

@Kathy PattersonThe tax treatment of an IRA is the same, whether it is invested in stocks or real estate.