Unless special exemptions are done through PA.

Related to taxes....homestead exemptions. 

I agree with what you said I’m currently working for a medical company, and just trying to build my credit.

Interest and rental income are passive, and therefore exempted. 

The Solo 401(k) also has the advantage of being more favorable for real estate investments using debt-financing such as a mortgage - as the 401(k) is exempted from a small tax called UDFI that an IRA would pay on the percentage of income derived from the borrowed money.So, as you continue your research and get feedback here on BP, think about what type of program will best suit you needs and be sure to ask questions along that line.

My mom and aunt now want to move to AZ, for my aunt's medical benefit, and the house is in FL (3/2 1400 sq ft with an uncovered pool). 

This would normally be taxable but the accountant reconciles it with the 121 exemption and voila - no tax on that. 

The only reason I am doubting this though is that the reason rental income is exempt is because it is considered passive income but by designating as a "real estate professional" it is turning my rental activities into a non-passive activity (allowing my real estate losses to offset against ordinary income).Let me know your thoughts or if anyone has any experience with tax reporting for "Real Estate Professionals" within an LLC. 

You wouldn't walk into a hospital and expect to know all of the medical jargon the doctors use, so don't be hard on yourself for not knowing all of the real estate jargon.

Brian,      Since all of your use was in that five year period your non qualified use is considered exempt.