You only get capital treatment when you have an investment interest in the property.

Thanks for the education Wheatie - the only part I wasn't aware of was taxability treatment of Roth vs.

Buying and selling land can be an active item; however, you would need to hold it for investment (appreciation, etc) in order to qualify for capital gain treatment.  

I don't see tenants as people somehow less deserving of decent treatment than others.  

Please be careful: this exception from partnership treatment applies only to strictly rental operations, and it has some restrictions that can derail the plan.

The tax treatment of sole proprietorship income (what you will have) and a single-member LLC income is the same because single-member LLCs are "pass through entities" so the income essentially flows through to your personal return.- You don't need to have a corporation to have people work on the property. - Best way to get tenants?

Bright=happy and that will be more visually appealing every time.

Unless you've elected non-standard tax treatment your LLC is irrelevant for tax purposes.You can register your OK LLC in TX as a foreign entity.

The large majority of treatments were elective vs HMO fee based & the cash-flow from the spa's was significantly higher than any reimbursement he realized from his general practice.I am sure this 401(k) option is also a consideration in the increasing number of ambulatory surgical centers we are seeing locally (all separate entities) that are owned by the wives of groups of physicians. 

She would have lost these items anyway and not gotten this good of a treatment from anyone else.