ALL DUE respect, terrible choice, ok so you made 130k, 65k each, after taxes, 40k, so what. 

I am looking to find the optimal tax and legal structure to optimize his situation.

I am told that the US debt creates imminent collapse.

I have a car payment as well and around 10k in credit card debt.

First, I thought about renting it out to a church, but looking at tax code I think it would be better to flip to a church.

Understand legal requirements like tax numbers, residence permits and use of a notary.

Here are the #s:Asking $129,0002 bed 1 bath 718sqftEverything has been updated15% Down - 9.5% Interest rate - 30 yrs amortization, no ballon Rents around $1000 - 5% Vacancy - $700 Taxes yr - $741 Insurance yr - 10% Property Management - 1.5% of rent for Maintenance and 5% of rent for capital expenditures. 

@Yadira ValeraIf you transfer property but mortgage stays in your name it still shows on creditIf loan is in the LLC, you may have to personally guarantee it so you would be required to list it as a debt on any new applicationsJust a fyi

A few rules to keep in mind as you get started: - To get full tax deferral, you have to replace the full value of what you sell. 

If she sells the property before that date, she would not qualify for the full exclusion unless she meets certain exceptions such as unforeseen circumstances like job loss, health issues, or other qualifying reasons outlined in IRS Publication 523.Regarding prorating the exclusion, unfortunately, there's no provision in the tax code for prorating the exclusion based on partial years of ownership or residence.