The IRS taxes home sale profits based on ownership, not who receives the money.

2️⃣ No Phone Call or Verification – If they refuse to hop on a call, is that an automatic red flag?

Can IRS still see it as a part of primary dwelling unit and thus, consider it not eligible towards achieving REP status?

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.

Be sure to explore all around the forums as well as many of the FREE tools that Bigger Pockets provides.I am on the lending side of things and am always happy to hop on a call to discuss loan options that are out there, even if not offered by my resources.

. - Are you or your spouse an IRS real estate professional? 

This requires careful structuring and compliance with IRS rules.Installment Sales or Buyouts – Instead of distributing properties outright, investors can sell or buy out their respective shares over time, spreading out tax liability and reducing immediate capital gains impact.LLC Restructuring (State-Specific) – Converting the corporation into an LLC taxed as a partnership may allow for a more tax-efficient asset distribution.

With a mortgage foreclosure you mentioned that the IRS has 120 days to right of redemption?

One key difference is that Prime also includes monthly bookkeeping in their pricing.For reference, here’s what Taxstra provides for $1,500:• Preparation of individual tax return• Electronic filing of federal & state returns• Review of prior-year return for consistency• Up to two hours of post-filing support for minor corrections/questions• Digital document storage• Short-term rental loophole assistance• Personalized video walkthrough of the tax return• IRS/State correspondence for any notices or inquiries• Year-round access for “quick questions” (not requiring additional research)Does anyone here have experience with either of these services, or have recommendations on what to prioritize at this stage?

Quote from @Havital Miltz: Normally you would set the LLC in the state where the property is.You have no tax benefits for setting up an LLC, it is more a protection from lawsuits and going after your personal assets, however not a guarantee....As a husband and wife you do not need to set up a partnership - IRS has special considerations for married couples for self employment, you could also apply that for a rental...Hope that helpsA joint venture is available to any 2 people co-owning real estate for investment purpose as tenant in common  under Proc. 2002-22 (unrelated to marriage) but it can't be owned in an LLC together.