The real estate bubble in 2007/2008 was primarily based on government-induced loans that were then backed by government via taxpayer. 

Funding it is where most taxpayers overlook.

I may be the most unlucky real estate investor here, and yet, I’ve still had to make the mortgage, insurance, and tax payments on a building that has needed to wait until my baby was more living than dying, wait until I caught up with everything else that I had to put aside to tend to that baby. 

Passive activity losses are those losses from activities in which the taxpayer doesn't materially participate.

A taxpayer will be considered a real estate professional if (1) more than one-half of the total personal services the taxpayer performs in trades or businesses are performed in real property trades or businesses in which the taxpayer materially participates and (2) the taxpayer performs more than 750 hours of services during the tax year in real property trades or businesses in which the taxpayer materially participates.  

The ROI sucks, but at least I can sell and get my money back (but there might be a big tax payment due because of recapture, but the property will surely cash-flow after 20 years without the mortgage).

Black market-  most economies that have something that impactful happen, causes the taxpayers to move to a black market approach.  4.

Probably a good thing for US tax payers since we are in a seller's market.

The way I read Rev Proc 2002-22 is that the IRS is willing to provide a private letter ruling ("PLR") for taxpayers with tenancy in common interest ("TIC interests") if they can meet the 15 or so requirements to basically prove that the TIC interests are in no shape or form partnership interests. 

the main benefit would be the trust transaction would be non-reported; however, the tax payments/insurance payments would reveal the presence of the LLCTalking to another attorney tomorrow.