I have been with a property management company for 2-3 years in Arizona and the property is being run continuously at a loss.

Brad's group is based in Dallas, but his students live in and are buying in many states, including Arizona, so if you think you might benefit from such a program, don't rule it out based on your location alone. 

Quote from @Daniel Amsalem: If you have an Airbnb in DC, Maryland, or Northern Virginia (NOVA) or want to, I'd ask you provide feedback to the City of Alexandria regarding their proposed regulations.Regulations: https://www.alexandriava.gov/sites/default/files/2024-08/sho...Feedback Form: https://www.research.net/r/AlexandriaVA-ShortTermRentalsAlexandria sets the example for all of DMV as the most permissible county/region. 

No offense to realtors but how a property is set up or length of time it has been rented for has no bearing on the legality of the property records on file if they differ.

However there were other markets like Detroit, las vegas, much of arizona, much of the midwest that had large loss of rental income from a combination of higher vacancy and falling rent.  

However, once you file your taxes, the IRS will figure it out and you're screwed!

If you continue filing taxes jointly the income you realize from your separate property will still need to be explained and redacted, regardless of the type of entity holding the real estate.

Yes it does, needing to keep the books and properties seperate for proper Tax Reporting and any 1099s you may need to file can be costly.

This approach simplifies the sale and avoids unnecessary legal or tax complications.If she want to share the proceeds and tax obligation in a technical way, she need to file a partnership return for this property.This post does not create a CPA-Client relationship.

They don't file for you with the state, they claim it cost extra to do that.