If you plan to use a GA property as the relinquished property in a 1031 exchange, GA will not allow 1031 tax treatment if the replacement property is outside GA and profit on the sale of that property will be taxable on your GA tax return.. 

But,  I have seen big RE company that deduct thousands of dollars as an abandonment loss rather than adding those thousands of dollars to a new property, which would be wrong treatment. 

The former is a legal entity, and the latter is a choice of tax treatment.

However, there are so many other things that can be evaluated if you need a different treatment. 

@Tait DuryeaIt's not really a loophole....A loophole is an unintended tax benefit created by oversight or omission.The RE professional treatment regarding passive losses is an intended, explicitly codified benefit designed to provide relief from the passive activity loss rules to those that are genuinely involved in real estate as a trade or business.Regarding documentation. 

Daren D Wagner if you are registering as a multi member LLC, be aware that the default treatment for tax purposes is a partnership.

I had read @Logan Allec's post in this thread regarding different tax treatments in various use scenarios, but I think I made some bad assumptions about which things carry over from one scenario to the next.  

With ObamaCare, we'll not only kill unborn babies, because the socialists don't want to pay for them or deal with their IDIOT PARENTS, but we'll also let the elderly die when they become ill if their treatment is too expensive!

What do you visualize your "ideal" life being and what you need to make that happen?

But it does sound like they are trying to rip one, but if this is a community sewage treatment facility (several types) cost sounds about right in line as in this area.