, and @Paul De Luca, thank you all for chiming in.

There also looks to be issues where gaming has expanded with a bailout in Delaware and financial issues in other states (granted bankruptcy is very common even with successful companies as Caesars globally is doing right now) but the point is you need much more than just gambling. 

By the way, this is the statement you are supposed to include in your tax return each year if you want to do this:Section 1.263(a)-1(f) de minimis safe harbor electionTaxpayer’s name: Taxpayer’s address: Taxpayer’s identification number: The taxpayer is hereby making the de minimis safe harbor election under section 1.263(a)-1(f).

I live in Delaware but I'm from PR which is also my focus for REI.  

Unfortunately you're over simplifying it and you can't just use your interpretation of what makes a pass through override actual IRS  tax code. lol, not over simplifying it, read on, this isn't the first tax attorney's blog I've read that states you CAN do this in an LLC or a SP, etc.http://sctaxlawyers.net/the-new-20-pass-through-de...https://www.nolo.com/legal-encyclopedia/how-the-re...For landlords, the most stunningly good provision of the TCJA is a new tax deduction for owners of pass-through businesses.

Thanks Eleena de L.

Eleena de L. you should take a look at these articles! 

I invest in Delaware County.

Generally speaking, the only 2 legal entities that allow multiple investors to pool 1031 exchange proceeds are the Tenant-in-Common (TIC) and Delaware Statutory Trust (DST).

Accordingly, the taxpayer will not be treated under this section as materially participating in the combined rental real estate activity unless the taxpayer materially participates in the activity under the tests listed in § 1.469-5T(e)(2) (dealing with the tests for determining the material participation of a limited partner).(2) De minimis exception.