Calculate the gain and tax implications of a sale.Do you have any passive loss carryforwards to offset the gain?

It's going to be a money soak and large loss because it seems like the principal wants to outsource eyes, ears, and skills and is willing to pay someone else to bring their own people which costs 2-4x as much as having some of your subs and eyes on the job.If I had other pressing business concerns, I would sell all of the properties in a portfolio sale, bank the money and repurpose it, and let someone else do it all.

We provide our clients with a profit and loss statement for the entire year when we give them their 1099.

Class B likely won't want that because it means a full loss of capital.

Great food, live music, parks, art, theater.  

Moving the property to a corporation is horrible horrible advice.Not only does that potentially screw the step up in basis as there would only be step up in basis of corporate shares and not the property itself, but it also locks in real estate losses that can't be passed to the owners.You should consider firing the CPA for giving that advice.

The Fed is fixated with 2% inflation, but they are ignoring what is best for average Americans who are just trying to put food on the table.

Would they just be passive losses that can offset passive income or can we treat them to offset capital gains from other investments ?

Smith, Tyson, Schneider Electric, Hankook Tire, General Mills, Mars…to name a few (Chamber).Food!

One of the many advantages being classified as a “real estate professional “allows you to offset income with real estate “paper losses “ like depreciation and other expenses.