With respect to earnings, the pass-through entity is tax neutral.Dividends are not earned income, they are investment income and not included as earned income in the SS benefit reduction calculation.BTW, if the pass-through entity is a sole proprietorship (disregarded entity), then all of the net income from the business entity is passed through to the taxpayer as self-employment income.

@Grant Miller - There should not be a difference between selling the property in your personal name or inside of an LLC (I assume single member LLC(owned by one person) taxed as a disregarded entity(didn't select the option to be taxed as a corporation)).

A partnership, corporation or disregarded entity?

@Erik SherburneI will assume that you own your properties in an LLC - If that's the case and you are the only owner, the IRS sees this as a "disregarded entity" for tax purposes.

Rob is incorrect in saying that an LLC can be disregarded by a plaintiff's attorney.

Commingling funds, disregarding all corporate formalities, using the entity to commit fraud, etc.  

You might see if there are any such interests on the secondary market that you could identify and buy.Purchasing Tenant-In-Common interests, Delaware Statutory Trust beneficiary interests, Land Trust beneficiary interests and other "disregarded entities" qualify for 1031 Exchange treatment, but Section 1031 of the Internal Revenue Code specifically excludes any kind of partnership interests for 1031 Exchange treatment. 

Is it a disregarded entity?

I think the term is disregarded entity...Whether you would want to use a LLC or corporation for your company depends on what type of business you will be doing and what your strategy is. 

Now, I'm guessing you're a single member LLC and are likely going to be a disregarded entity, and thus this provision of the Code would apply (To state tax filings, not necessarily federal tax filings, consult a CPA, I would recommend Mr.