https://www.irs.gov/pub/irs-utl/2013_NTF_Self-Rental_Tax_Dilemmas.pdf
Since you can't take the passive losses, there is no benefit of renting via an LLC and a potential issue on the sale of the property.
These transactions have not met the smell test of any audit that I've heard of. Be very careful in going this route. The sale of the property is even more burdensome. Minimum taxes is another issue you would have.
**I don't work for TT. Just trying to help. All the best.
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