You can join a "hemorrhoids suffers group" for relief but you can't join a "SubTo Community" to learn SubTo" properly and legally.

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

All that while state and IRS taxes on profits are increasingly challenging, as refinanced funds for construction in progress aren't deductible expenses, thus not lowering tax bills.All that said, the "snowball quickly" effect you mentioned isn't quite happening yet.

Many investors use this “infinite leverage” approach to maximize liquidity and tax efficiency.

Transfer Fees or Property Tax Reassessment Some states impose a transfer tax or reset the property tax basis when property ownership is moved into an LLC.

Use that loan to pay the back taxes and get things under control.

Welcome to the European tax environment :-)The US does not have federal sales tax, but we do have State sales tax and City Sales tax.

There may be a property tax benefit to leaving pieces.

The problem is that we need to be careful with the word "passive" because it has a very specific meaning in the tax law, and it is not intuitive.For example, losses from rental properties are usually passive but not always, there are some exceptions.

When it comes to your 1031 exchange the LLC really isn't the issue.The IRS cares about which tax return reports the activity of the property.